Daily Market Bulletin – 4 February 2022
Market Developments
Investors appear upbeat, as solid earnings from the US tech sector helped them overcome Meta's disappointment and monetary tightening prospects.
Amazon reported Q4 Revenue rise to $137.4 billion, in line with its expectations, up 9% year-over-year (y/y). Revenue from its Cloud Service (AWS) surged 40% y/y, to $17.78 billion. Furthermore, the company announced for the first time its Advertising Services Revenue, which impressed with increase of 33% y/y, to $9.716 billion. [1]
The stock rose in extended trading after these results, also helped by the $11.8 billion gain from Amazon's stake in EV maker Rivian, despite rather disappointing guidance of $112- $117 billion in Net Sales for Q1 2022.
Snap's stock rocketed in extended trading, after the company reported its first profitable quarter as public company. Q4 2021 Net Income was $23 million from an around 113 million Loss a year ago, while Revenue increased 42% from a year ago, to roughly $1.3 billion. [2]
Ford's stock dropped after-hours, as its Q4 Revenue of $37.7 billion and Earnings/share of $0.26, missed expectations. For Full 2022, the firm projects earnings of $11.5 - $12.5 billion (adjusted EBIT), up from the $10.0 billion it reported for 2021 [3]. On the EV front, the firm said that its highly anticipated all-electric F-150 pick-up truck, is expected to launch in spring this year. [4]
The European Central Bank (ECB) did not make any policy changes yesterday and reiterated that interest rates will "remain at their present or lower levels until it sees inflation reaching 2%"[5]. When asked, Ms Lagarde did not rule out rate hikes in 2022, while a few months back she had said that such a move would be unlikely. [6] The Euro rallied, posting yesterday its best day in more than a year against the greenback.
On Wednesday, the Bank of England (BoE) raised interests rates by 25 bps, to 0.50%, with four officials (out of nine), dissenting in favor of a bigger 50 bps hike. The pound reacted higher.
Today, The Reserve Bank of Australia released its Monetary Policy Statement, upgrading its Inflation forecasts and reiterating that "the Board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve". [7]
Main Asia-Pacific stock markets were higher, with Hong Kong returning with profits, whereas mainland China is still out on holiday. European futures are also in good mood. In the FX space, the US Dollar and the JPY Basket, are mixed after Thursday's decline.
Instruments Snapshot
EUR/USD is upbeat and eyes its January high (1.1483), after its best day in more than a year.
GBP/USD shows indecision around 1.3600, following yesterday' rise on BoE rate hike.
USD/JPY is mixed, as its struggles to extend Thursdays rebound beyond 115.00.
USD/CAD trades with positive undertone above 1.2650.
AUD/USD is soft, after another rejection of 0.7150.
NZD/USD is constructive below 0.6700.
GER30 is on the front foot, testing 15,500.
US30 finds support and tries to move past 35,300.
USOIL sets new multi-year highs, as it breaks above 90.50.
XAU/USD advances towards 1,810.
Economic Calendar Picks (GMT)
An intense week concludes with the US Job's report (13:30), following prior disappointing addition of just 199K payrolls.
Canada also releases its employment figures at the same time, while Eurozone Retail Sales are due at 10:00.
See the economic calendar here.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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