Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Week Ahead Preview: 20th of May

News

Walmart’s stock hits record high on Q1 results

News

Crude oil rises on US supplies, inflation data

News

Another nice quarter for NVIDIA?

News

Alibaba delivers earnings miss, shares slide

News

USD edges lower ahead of key economic reports

Trends & Analysis
News

Week Ahead Preview: 20th of May

News

Walmart’s stock hits record high on Q1 results

News

Crude oil rises on US supplies, inflation data

News

Another nice quarter for NVIDIA?

News

Alibaba delivers earnings miss, shares slide

News

USD edges lower ahead of key economic reports

News

Citigroup plans to cut hundreds of jobs

Monday, March 06, 2023

The news shaping the markets today

Ukraine’s military said that Kyiv is continuing to hold off attacks by Russia on Bakhmut. The safe haven US dollar index fell this morning.


Saudi Arabia’s Riyad Bank PMI rose to 59.8 in February, from 58.2 a month ago, lending some support to the SAR/USD forex pair.


South Korea’s consumer price index rose 4.8% year-over-year in February, compared to January’s reading of 5.2%, which sent the KRW/USD pair slightly higher in forex trading this morning.


Australia’s Melbourne Institute’s Monthly Inflation Gauge rose 0.4% in February, compared to a rise of 0.9% in the prior month, exerting slight pressure on the AUD/USD forex pair.


Sri Lanka’s central bank hiked its key interest rate by 100 bps to 15.5%. Despite this, the LKR/USD pair fell in forex trading this morning.

 

What’s happening: Shares of Citigroup rose on Friday, after the company announced layoff plans.

What happened: The banking giant initiated a round of job cuts that account for around 1% of its overall workforce.

Citigroup indicated that the planned job reductions are a part of its normal business planning.

Why it matters: Several US banks, including Morgan Stanley, Bank of America, Goldman Sachs, JPMorgan Chase and Credit Suisse, have announced job cuts amid uncertainty around the economy and a slowdown in deal-making activities.

Citigroup became the latest bank to join the layoff bandwagon, with the company planning on trimming several hundred jobs in its key investment banking unit and the US mortgage underwriting unit.

Citigroup reported investment banking revenues of $645 million for the fourth quarter, which represented a 58% year-over-year decline. Analysts warned of a further decline in investment banking revenues in the first quarter.

The bank’s mortgage unit has also been struggling due to lower mortgage demand spurred by the steep rise in mortgage rates after the Fed’s aggressive interest rate hiks.

The recent job cuts represent less than 1% of Citigroup’s 240,000 people workforce. The banks indicated that the layoffs are routine in nature and a part of its usual business planning.

How shares responded: Citigroup’s shares gained 1.9% to close at $52.35 on Friday. The stock has added around 8.6% over the prior six months.

What to watch: Investors will continue to monitor the overall economic environment and the Fed’s monetary policy. Markets will also keep an eye on the execution of the job reductions.

The markets today

European stocks will be in focus today ahead of a basket of economic reports

Context: European stocks closed higher on Friday, as investors digested recent economic reports.

Details: Economic data showed inflation across Europe coming in higher than projected. Although Eurozone’s headline inflation eased to 8.5% in February, from the previous month’s reading of 8.6%, this was still higher than markets expectations of 8.2%. Core inflation accelerated to 5.6% in February, from 5.3% in January.

Producer prices in the Eurozone fell 2.8% in January, better than market estimates of a 0.3% drop. Moreover, the S&P Global Eurozone services PMI improved to 52.7 in February, from January’s reading of 50.8.

European markets also received a boost from Atlanta Federal Reserve President Raphael Bostic’s comments to ease the US central bank’s pace of rate hikes to 25 bps. Market sentiment was also supported by recent data showing an acceleration in China’s service sector growth in February after the relaxation of the country’s strict covid-19 rules.

The STOXX Europe 600 Index rose 0.92% to close at 464.26 on Friday, with auto stocks adding around 3.5% and mining stocks gaining more than 2%. Volkswagen led the gains in auto stocks, with its stock surging more than 10% on Friday after the company issuing a strong sales forecast for 2023.

Oil and gas stocks bucked the trend, falling about 0.4%. For the week, the continent-wide STOXX 600 index added around 1.5%.

Germany’s DAX 40 jumped 1.64% to close at 15,578.39, while France’s CAC 40 gained 0.88% to 7,348.12 on Friday.

What are expectations: Investors await economic data on construction PMI and retail sales from the Eurozone today. The S&P Global construction PMI, which improved to 46.1 in January, is expected to rise further to 48.2 in February. Analysts expect retail sales growth of 1.3% in January, following a 2.7% decline in the previous month.

Other Markets: US trading indices closed higher on Friday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 1.17%, 1.61% and 2.04%, respectively.

Support & resistances for today

Technical Levels News Sentiment
EUR/USD  – 1.0643 and 1.0648 Negative
USD/CHF – 0.9353 and 0.9358 Negative
WTI Crude Oil – 79.02 and 79.12 Negative
FTSE 100  – 7943.02 and 7955.93 Positive
S&P 500  – 4040.63 and 4048.14 Positive

Market snapshot

Futures at 0400 (GMT)
EUR/USD (1.0648, 0.12%) Dow ($33,439, 0.07%) Brent ($85.22, -0.7%)
GBP/USD (1.2046, 0.02%) S&P500 ($4,058, 0.20%) WTI ($79.09, -0.7%)
USD/JPY (135.41, -0.33%) Nasdaq ($12,358, 0.38%) Gold ($1,861, 0.3%)

What else to watch today

France’s construction PMI and retail sales, Germany’s construction PMI and new passenger car registrations, Italy’s construction PMI, UK’s new car sales and construction PMI, Mexico’s car production, auto exports, and gross fixed investment, Brazil’s auto industry production, new vehicle sales and Central Bank of Brazil focus market readout, Russia’s total vehicle sales, Canada’s Ivey Purchasing Managers Index, US factory orders, as well as Spain’s consumer confidence indicator.


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.