Daily Market Bulletin – 10 February 2022

Market Developments

Investors appear to be in a wait-and-see mode ahead of today's Inflation update form the US, while overnight we had some high profile earnings from the US.

Disney's stock popped after-hours, following the release of impressive quarterly results for Q1 FY2022 [1]. Disney+ added 11.8 million paid users, recovering from prior quarter disappointing 2.1 million increase, while the "Disney Parks, Experiences and Products" segment posted its third straight profitable quarter.

It also posted record Revenue of $21.819 billion, a 34% year-over-year rise and adjusted Earnings/share of $1.06, compared to $0.32 a year ago.

The stock of Uber also gained in extended trading, after reporting solid results for the fourth quarter of 2021 [2]. Revenue surged more than 80% year-over-year, to $5.778 billion, and turned in profit of 892 million, from a $2.424 billion Net Loss in the previous quarter.

Gross bookings rose to $25.866 billion, higher than the previous quarter and in line with the firm's $25-$26 billion guidance, which was maintained for Q1 2022.

French banking heavyweight Societe Generale announced today record Net Banking Income of €25.798 billion for 2021, with is CEO commenting that "2021 marks a milestone for the Societe Generale Group, which achieved the best financial results in its history, enabling it to generate a good level of profitability and offer its shareholders an attractive return." [3]

Fed Cleveland President Loretta Mester (voter) does not see a compelling case for a larger 50 basis in March, based on yesterday's comments, as reported by Reuters. [4]

Main Asia-Pacific stock markets were upbeat, whereas European futures are in a cautious mood. In the FX space we continue to see mostly subdued activity, with US Dollar mixed and the JPY Basket soft.

Instruments Snapshot

EUR/USD shows indecision below 1.1450, following yesterday's rebound.

GBP/USD trades flat, capped by1.3550.

USD/JPY trades with positive undertone above 115.50.

USD/CAD is mixed below 1.2700, erasing earlier gains.

AUD/USD is inconclusive ahead of 0.7200.

NZD/USD remains upbeat, eyeing 0.6700.

GER30 lacks direction around 15,500, after its best day in two months.

US30 is soft following its two-day advance, but defends 35,700.

USOIL is on the defensive, probing $89.50, despite US stockpile drop.

XAU/USD trades with positive undertone, trying to surpass 1,835.

Economic Calendar Picks (GMT)

US January Consumer Price Index dominates today's economic calendar (13:30), after December's surge to 7% year-over-year.

Other than that, we expect US initial Jobless Claims (13:30) and EU Commission Economic Forecasts (09:00). Bank of England governor Bailey speaks at TheCityUK Annual Dinner, with the text expected to be published at 17:00.

On the earnings, Twitter and Coca Cola stand out today, reporting before the bell.

See the economic calendar here.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 10 Feb 2022 https://thewaltdisneycompany.com/app/uploads/2022/02/q1-fy22-earnings.pdf

2

Retrieved 10 Feb 2022 https://investor.uber.com/news-events/news/press-release-details/2022/Uber-Announces-Results-for-Fourth-Quarter-and-Full-Year-2021/

3

Retrieved 10 Feb 2022 https://www.societegenerale.com/sites/default/files/documents/2022-02/Q4-21-Financial-Results-Press-Release.pdf

4

Retrieved 03 Jul 2022 https://www.reuters.com/world/us/feds-mester-says-she-doesnt-see-compelling-case-start-with-50-bps-rate-hike-2022-02-09/

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