Daily Market Outlook, January 17, 2023China Growth Concerns Cap Asian Equities EX Japan, BoJ Bets Supports The NikkeiChina growth concerns have put a cap on the Asian equity markets' bullish sentiment with the MSCI Asia Pac index retreating from seven month highs. China data confirmed 2022 as a dire year for the region with a meagre 3% annual GDP from 8.4% the year before, confirming lowest levels in 50 years. While Q4 GDP marginally exceeded economist expectations at 2.9% versus 1.6%, down from 3.9% in Q3 22, Asian investors pared support for Chinese equities, investors will be hoping that the contraction in growth may spur further stimulus measures to tackle the economic distress driven by last years strict Covid restrictions.Uk employment data released earlier this morning has added pressure on the Bank of England who may now be poised to raise interest rates for the tenth consecutive time at their next meeting. While the unemployment rate remained anchored at 3.7% for the three months to November, however, UK wage growth once again topped expectations for both headline and ex bonus metrics, printing 6.4% above the expected 6.2%. The robust data has the UK benchmark FTSE index teerting on break out to new all time highs.In the Eurozone investor focus this morning will be on the German ZEW survey for January, market watchers are anticipating continued marginal improvement in investor sentiment, the last print was -23.3, analysts are looking for at least a 10 point pick up in expectations, while the current situation view is also expected to improve from the -61.4, further upticks in expectations and the current situation perspectives would suggest the potential for a milder downturn in the Eurozone economy, this comes at a time when Bank of America’s Fund Manager survey shows investors are the most bullish the region since Feb ‘22.In the US all eyes will be on New York Empire manufacturing data one of many regional surveys due to show where sentiment sits heading into the new year, market watchers are pencilling marginal improvements from -11.2 to -5.0Markets-wise, all eye are this evenings Bank of Japan meeting, arguably one of the most market moving central bank meetings of the year, although markets don’t expect an explicit policy change, markets are poised for official statements, since the surprise policy adjustment in December, markets are increasingly betting on an end of the decade long Yield Curve Control strategy, investors are poised for volatility with options markets pricing the potential for a 200-285 pip move either side of the spot price going into the meeting, current spot reference is 128.50Overnight News of NoteAsia Shares Slip Overnight On Weak Q4 China Economic DataUS Futures Lower As Investors Look To Corporate EarningsBoJ Policy Change Fears Sidelines Bond Sales Amid Spreads RisingOil Steadies As Investors Look To Chinese Demand IncreaseGoldman Sees ‘Bullish Concoction’ For Global CommoditiesGold Prices Dips As Firmer Dollar Demand Lowers AppealChinese Growth Drops To Near-Historic Lows After Covid ReopenChina Population Shrinks In First Time Since 1960s In Seismic ShiftSec Blinken Set To Test Limits Of Chinese Diplomatic EngagementChief Executives, Economists Brace For Recession As Davos BeginsNew BoJ Governor Nominee Set To Be Presented On February 10Australia Consumer Sentiment Posts Biggest Gain In Nine MonthsEU Hopes Of Italy ESM Approval May Be Premature, Official SaysBoE Governor Warns Of Upside Risks From Labour Market, ChinaChinese Chip Giant Weighs IPOs, Land Sales To Slash Debt BurdenFoxconn Replaces iPhone Assembly Chief After Tumultuous YearsWestern Banks Struggling To Exit Russia After Putin Interventions(Sourced from Bloomberg, Reuters and other reliable financial news outlets)FX Options Expiration, New York Cut 10am ESTUSD/JPY 125.00 ($651M) 127.85 ($325M) 130.22 ($570M)AUD/USD: 0.6800 (A$2.0B) 0.7210 (A$1.4B)(Options Data DTCC)Technical & Trade ViewsSP500 Bias: Bullish Above Bearish Below 3950Primary support is 3950Primary objective is 4022Below 3940 opens 389020 Day VWAP bullish, 5 Day VWAP bullishEURUSD Bias: Bullish Above Bearish below 1.0735Primary support is 1.0735Primary objective is 1.09Below 1.0730 opens 1.061020 Day VWAP bullish, 5 Day VWAP bullishGBPUSD Bias: Bullish Above Bearish below 1.21Primary support is 1.21Primary objective 1.2315Below 1.21 opens 1.2020 Day VWAP bullish, 5 Day VWAP bullishUSDJPY Bias: Bullish above Bearish Below 130Primary resistance is 130Primary objective is 125.50Above 130.80 opens 132.2020 Day VWAP bearish, 5 Day VWAP bearishAUDUSD Bias: Bullish Above Bearish below .6920Primary support is .6920Primary objective is .7030Below .6900 opens .682020 Day VWAP bullish, 5 Day VWAP bullishBTCUSD Bias: Bullish Above Bearish below 20000Primary support 20000Primary objective is 22400Below 19900 opens 1930020 Day VWAP bullish, 5 Day VWAP bullish
