Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider.

You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

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Analysis

Market Opportunities in Focus

BY TIO Staff

|January 25, 2024

Here's a brief overview of last week's key events and what you should closely monitor over the next few trading days.

Equity Indices

Last week, the technology sector spearheaded a substantial market rally, with indices such as the S&P 500, the Nasdaq, and the Dow Jones continuously hitting new all-time highs. The S&P 500 has risen approximately 3.6% from the previous week's lows.

Stocks

Taiwan Semiconductor Manufacturing Company (TSM) has been the best performing stock in the TIOmarkets equity CFD selection this week with a substantial 13.53% return. The Advanced Micro Devices (AMD) is a close second with a 12% gain while the KLA Corporation’s stock has rallied 10.77%.

The USD, Economy & Jobs

The US economy demonstrated strength with a reduction in jobless claims to a level last seen in September 2022. Additionally, growing consumer confidence has contributed to the USD's sustained rally against a basket of major currencies. Predictions for Q2 GDP growth vary, ranging from 1.5% to 2.4%, with the Fed's own estimate at 1.8%.

Central Bank Policy

Recently Christine Lagarde, President of the European Central Bank (ECB), suggested possible interest rate reductions by summer 2024 during her interview at the World Economic Forum in Davos. This has exerted downward pressure on the Euro. In the US, traders are predicting a 51.3% chance of a Fed rate cut in March.

Gold & Oil

The gold market experienced a decline last week but rebounded due to geopolitical tensions in the Middle East. The oil market has been relatively stable, with prices gradually increasing as hedge funds cautiously accumulate oil. With ongoing Middle Eastern tensions, the oil market could have short to medium-term upside potential. Oil demand is expected to rise in 2024, potentially leading to upward price pressures. The International Energy Agency (IEA) and the U.S. Energy Information Administration (EIA) has increased its global oil demand growth forecast for 2024, marking the third consecutive upward revision in as many months.

Trading Opportunities in Focus

  • The gold market might continue to face upward pressure due to rate-cut expectations and geopolitical uncertainties. However, potential USD strength poses a risk.
  • Oil has established a base, increases in demand could see price rebound but any potential USD strength also poses a risk to the downside.
  • Technology stocks are likely to spearhead global indices markets, any changes in central bank policy could significantly impact this market.
  • The USD has been the second strongest major currency this month, it remains the major currency to watch.

Pay close attention to changes in central bank statements, as these could significantly impact the market. Review your charts, identify key levels, and be ready to trade based on what you observe.

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While research has been undertaken to compile the above content, it remains an informational and educational piece only. None of the content provided constitutes any form of investment advice.

TIO Markets UK Limited is a company registered in England and Wales under company number 06592025 and is authorised and regulated by the Financial Conduct Authority FRN: 488900

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

DISCLAIMER: TIO Markets offers an exclusively execution-only service. The views expressed are for information purposes only. None of the content provided constitutes any form of investment advice. The comments are made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and its affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances, or needs. The content has not been prepared in accordance with any legal requirements for financial analysis and must, therefore, be viewed by the reader as marketing information. TIOmarkets prohibits duplication or publication without explicit approval.


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TIO Staff
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