President Javier Milei, newly appointed Argentina's libertarian firebrand, charmed the World Economic Forum with a message against socialism and for free market capitalism, ditching his signature chainsaw for promises of unchained prosperity. In his Davos debut, Milei declared Argentina "open for business," pledging to dismantle state intervention and empower social entrepreneurs as the keys to ending his nation's hyperinflation. While critics fear painful reforms and social unrest, Milei's bold vision could see Argentina finally break free from decades of socialist stagnation.
EQUITY
Wall Street fell for the third day, pressured by rising Treasury yields that squeezed tech stocks and dented hopes for a near-term Fed rate cut. Stronger-than-expected retail sales data painted a picture of resilient consumer spending, defying market expectations and pushing the odds of a March rate cut down to 50%. Meanwhile, Apple Watch sales with blood oxygen monitoring will be paused again after a patent dispute resurfaced, while Boeing saw a slight lift from completion on the 737 Max 9 inspection.
GOLD
Gold prices dropped to a one-month low, losing 2.37% in just two days. This was mainly due to rising US yields and a stronger dollar following better-than-expected December retail sales data, although it also faced selling pressure in key markets like Pakistan and India.
OIL
A surprise build in U.S. crude stockpiles temporarily pressured oil's price, although it ended higher as China's growth reignited demand concerns. Inventories swelled by 939,000 barrels against expectations for a 2.4 million-barrel decline. OPEC stuck to its forecast for strong oil demand growth in 2024 and predicted a robust increase in 2025, led by China and the Middle East, despite views by the IEA that peak oil demand is nearing.
CURRENCY
The US dollar's reign extended with dimmed expectations of immediate Fed rate cuts. While China's growth met its target, a wobbly recovery and deepening property woes kept the yuan down. Meanwhile, the euro weakened as ECB officials reined in dovish bets, while sterling gained on higher inflation. Argentina's black market peso plunged to a record low amid its radical economic shift.
