All eyes on CPI data 15/01/2025

HOT stories for today

Stocks on the move:    

• Eli Lilly (LLY) -6%: Its updated fourth-quarter revenue outlook disappointed, particularly regarding its blockbuster weight-loss and diabetes drugs, Mounjaro and Zepbound.
• Teladoc (TDOC) -3%: Shares slipped despite a new partnership with Amazon (AMZN) to expand access to Teladoc’s programs for diabetes, hypertension, pre-diabetes, and weight management through Amazon’s Health Benefits Connector.
• Applied Digital (APLD) +10%: The digital infrastructure stock surged after Macquarie agreed to invest up to $5 billion in Applied Digital’s AI data centers.
• Boeing (BA) -2.1%: Shares declined as the aerospace giant reported 348 airplane deliveries for 2024, about a third fewer than the prior year, widening the gap with rival Airbus (EADSY), which delivered 766 planes.

Today’s action

• Asia-Pacific markets delivered a mixed performance on Wednesday after softer-than-expected U.S. inflation data sent Wall Street higher overnight. Investors also digested Japan's January Reuters Tankan survey, which showed business sentiment among large manufacturers rebounded to a reading of +2, up from -1 in December. Non-manufacturers’ optimism rose slightly to +31 from +30.In Europe, markets are set for a positive open as traders await the latest U.S. consumer price index (CPI) reading, a key indicator for the Federal Reserve's interest rate decisions.
• U.S. stock futures hovered near the flatline early Wednesday. Dow Jones Industrial Average (DJIA) futures gained 10 points, or 0.02%, while S&P 500 (SPX) and Nasdaq 100 (NDX) futures edged up by 0.12%. Attention now turns to December’s CPI report, set for release at 8:30 a.m. ET. Investors will also be watching for fourth-quarter earnings reports from major financial players, including BlackRock (BLK), JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS), and Citigroup (C), all due before the market opens Wednesday.

Wahtclist: TSLA, BA, LLY, JPM, WFC, META, C, GS

Bitcoin

• Crypto Prices Rebound as Traders Eye U.S. CPI and Trump's Inauguration. Cryptocurrencies bounced back Tuesday following Monday’s selloff, with bitcoin (BTC) climbing to $97,300, supported by softer-than-expected U.S. Producer Price Index (PPI) data. Reports that President-elect Donald Trump is preparing executive orders favoring the crypto industry also fueled the recovery.
• BTC last traded at $96,500, up 3% in 24 hours. Altcoins outperformed, with Ripple’s XRP and dogecoin (DOGE) gaining 6% and 7%, respectively, as the CoinDesk 20 Index rose 5%. K33 Research suggested the recent selloff may reduce the likelihood of Trump’s inauguration next week, triggering a “sell the news” event for digital assets. Looking ahead, Wednesday’s U.S. Consumer Price Index (CPI) report is seen as the next key catalyst for crypto prices.
  Watchlist: Bitcoin: 89 000-108 000, Ethereum: 3000-3800, Solana: 160-220

Forex
 

• EUR/USD held around 1.0300 during Wednesday’s Asian session, supported by reports that President-elect Donald Trump’s economic team is considering gradual tariff hikes. Following disappointing December PPI data, improved market sentiment and a weaker U.S. dollar provided further support ahead of the U.S. CPI release later today. Meanwhile, expectations of additional European Central Bank (ECB) policy easing persist, amid the Eurozone's weak economic outlook.
• The Japanese Yen (JPY) gained across the board after hawkish remarks from Bank of Japan (BoJ) Governor Kazuo Ueda. USD/JPY fell to the 157.50 area, as Ueda hinted at the possibility of a rate hike in early 2025. Comments from BoJ Deputy Governor Ryozo Himino, combined with broadening inflationary pressures in Japan, have kept expectations for tighter monetary policy alive. However, the risk-on mood and the widening U.S.-Japan yield differential may limit further JPY gains.
  Watchlist: EUR/USD: 1.0200-1.0460, USD/JPY: 155-158.50

Basic Materials
 

• Gold (XAU/USD) prices dipped during Wednesday’s Asian session, trimming gains from the previous rebound. A risk-on mood, driven by easing concerns over President-elect Donald Trump’s proposed tariffs and softer-than-expected U.S. inflation data, pressured demand for safe-haven assets. The prospect of a slower pace of Federal Reserve rate cuts also weighed on gold. However, a weaker U.S. dollar and lingering geopolitical risks could provide support ahead of the U.S. CPI report.
• Meanwhile, West Texas Intermediate (WTI) crude oil increased to $76.75 early Wednesday. The U.S. crude benchmark rose on concerns that new U.S. sanctions on Russian oil exports could tighten global supplies. However, a U.S. Energy Information Administration forecast projecting steady U.S. oil demand through 2025 may cap WTI's upside. According to the American Petroleum Institute (API), U.S. crude inventories dropped by 2.6 million barrels last week, further supporting oil prices.
  Watchlist: GOLD 2600-2750, US Oil: 70.00-78.00

The TEFS Analyst team wishes you a successful day!