Morning Note: PMI Readings, Inflation Trends, and Support Levels to Watch

PMI, German Inflation, SP500 and Apple approaching support

The financial market will face a challenging scenario at the beginning of 2025, with important economic indicators and technical movements being closely monitored by global investors.

Here are the main events that can move the markets this Monday:

Eurozone services PMI

The PMI for the services sector for the Eurozone continues to show readings close to 50, a level that indicates a possible scenario of stagnation. However, several European countries have presented readings below this level, reflecting concerns about growth in 2025. Since the PMI measures companies' perception of the economy, these readings may negatively influence expectations for the Euro and European stocks.

US Services PMI showing good results

In the US, the service sector PMI presents a different reality from Europe. Recent readings have remained around 55. Today's forecast is 58.5, and a reading above this value may further strengthen the US dollar against its counterparts in the short term, consolidating the positive scenario for the sector.

German Inflation on the radar

The monthly Consumer Price Index (CPI) for Germany will be released today. As Europe's largest economy, German data is seen as a barometer for the European economy as a whole. The previous reading of -0.2% pointed to deflation in the short term, which could be even more dangerous than a controlled inflation. This data comes amid significant challenges facing Germany, both in the industrial sector and political arena, elements that could negatively influence the future economic outlook.

Aussie testing relevant support in the daily chart

The AUDUSD, after falling more than 11%, is now sitting at the most relevant support region in the daily chart in recent months. The last candles are starting to show signs of buying interest that could be considered a possible ignition scenario. The question that arises is whether the AUDUSD is ready to start a bullish pullback over the next few days, signalling a possible temporary relief in the selling pressure.

SP500 close to its all-times-high

The SP500 remains close to its all-time high, with no technical evidence to suggest sharper pullbacks. With Donald Trump back in office and his promises of economic stimulus, the question remains whether these policies will be enough to sustain the upward trend throughout 2025.

Apple approaching support level in a solid uptrend

Apple shares have fallen more than 6% since December 26 and are now approaching a former resistance zone that could act as support on the daily chart. This level will be a key point in determining whether the price will be able to sustain the upward trend or whether selling pressure will prevail.

These events and data reinforce the importance of closely monitoring market behaviour and possible short—and medium-term economic implications. The focus remains on macroeconomic data and technical movements that could provide information for investors' next steps.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.