NAGA Weekly Recap January 16 — 20, 2023

As we move deeper into the earnings report period, it's important to keep an eye on the financial events happening around us. Not only is the Fed's monetary policy decision likely to have a big impact on asset prices, but the market is also moving at a fast pace.

With so much happening, it can be easy to miss something important 🤔

So, don't let the market's volatility catch you off guard, take a look at our review and stay ahead of the game  🚀

US Retail Sales have continued to decline in December

According to a report by the Commerce Department, US retail sales have continued to decline in December, with a drop of 1.1%. This is the largest monthly decline since December 2021.

The report also states that consumer demand and confidence in the US is declining faster than expected. This is not in line with what economists had predicted.

Also, this report paints a picture of a lackluster end to the holiday season. This was one of the reasons for the decline in consumer activity.

As a result, the major US indices began to fall on Wednesday  ➡️ the Dow Jones ($DOW30) lost over 600 points, and the S&P 500 ($SPX500) was also trading lower the days before.

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Goldman Sachs posts its worst earnings miss in a decade

Goldman Sachs reported earnings per share of $3.32 for the quarter, which is a 67% decrease compared to the same quarter of the previous year. This falls significantly below analysts' predictions of $5.56 a share.

Additionally, the company's revenue for the quarter was $10.59 billion, a 16% decrease from the previous year, and slightly below the expected figures.

It also laid out the billions in losses it has made during an ill-fated push into consumer banking. CEO David M. Solomon warned that there was still more bad news to come, including costs related to the recent job cuts.

Trade $GS.N

Optimism for China's economy boosts oil prices to their highest close since December 1st, 2022

Oil prices continued to rise on Thursday, driven by an increase in Chinese demand.

Data from the Joint Organisations Data Initiative revealed that Chinese oil consumption had risen by almost one million barrels per day compared to the previous month.

This led to Brent crude futures climbing 1.4% to $86.16 per barrel and WTI crude futures rising 1.1% to $80.33 per barrel.

These levels were the highest seen since December 1st, 2022.

Trade $OIL.WTI

The Japanese Yen took a hit as the Bank of Japan surprised the markets 

BoJ surprised the markets by keeping its yield curve tolerance band unchanged, causing the currency to weaken against the US Dollar.

Specifically, the Yen dropped as much as 2.7%, reaching 130.35 against the US Dollar, which is at its strongest level since June 2022.

BoJ Governor Haruhiko Kuroda acknowledged that it may take some time for the measures to start having an impact on the market. It's important to note that the central bank kept its interest rate at an ultra-dovish -0.1% and reiterated its commitment to maintaining a dovish policy to support the economy.

Trade $USD/JPY

This concludes our weekly recap. Have a great weekend and see you next week! 👋