Our comments and expectations
External background. The S&P 500 spent most of the session in a sideways trend with a neutral result. A slight increase occurred at the end of the session, which allowed the quotes to close with an increase of +0.23%. Companies in the technology sector showed a weak session this time, especially in terms of shares in the semiconductor subsector. The securities of healthcare companies went up, the XLV profile ETF grew by 1.1%. Citi warned that investors' position in U.S. technology stocks is so optimistic that any sell-off could trigger a larger drop, and Amundi believes that global stock markets are overvalued by about 20% due to misplaced optimism about large technology companies and excessive confidence in inflation trends. In Europe, the Stoxx 600 rose 0.6%, recovering the losses of the last few sessions. The German DAX gained 0.7%. It is reported that German industrial orders unexpectedly increased in December, rising by 8.9%, while November's growth was revised downward to 0%. UK retail sales growth slowed to 1.2% year-on-year in January. The FTSE 100 rose 0.9%. The Invesco Golden Dragon ETF for the Chinese market rose 6% yesterday on the NASDAQ, which was the best result in the last year. Bloomberg reported that Chinese regulators plan to inform Xi Jinping about market conditions. Nevertheless, in the morning in Asian markets, the Hong Kong Hang Seng rests against the resistance of the 50-day average after yesterday's growth of 4%. Commodities rose by 0.3-0.6%, oil stopped declining. Global oil demand will continue to grow until the end of the decade, but growth rates have mostly peaked, according to Bank of America.
Bonds. The yield on 10-year US government bonds declined yesterday, but failed to return below the 50-day moving average. Markets are preparing for today's auction with a record volume of 10-year Treasury bonds worth $42 billion.
The KASE index. After the day before yesterday's moderately negative session, which gave a hint of a slowdown in the index, quotes on Tuesday were still able to show an increase of 0.5%. Now, a little less than 1% growth remains until the historical highs are updated.
Index shares. Unexpected growth was shown yesterday by Kcell, which jumped by 4.4% without accompanying news. At the moment, the quotes are at their highest since July 2021. Kaztransoil was in second place in terms of growth, but this did not significantly change its price picture. Kazatomprom rose 4.1% on the LSE, which happened against the movement of the sector, as uranium ETFs declined yesterday, and uranium itself lost 2.1%. The growth was probably related to yesterday's report of the company's management to the President of the Republic of Kazakhstan and with some clarifying data on shipment.
Currency. Following the results of yesterday's session, the dollar declined against the tenge, not breaking through the level of 454 and fell below the 50-day moving average at trading today. We believe that now exporters are buying tenge to pay taxes between February 15-25. This support for the national currency may not last long and weaken at the beginning of next week.
Key market news
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