Yesterday saw the equity markets head higher, giving market-watchers a clue as to how the City felt the Scottish referendum voting would go. Now that any last uncertainty has been removed, Royal Bank of Scotland, Lloyds and Standard Life have shot out of the blocks. A lack of corporate and economic news out today means that it will be interesting to see how much conviction this relief rally really has. Not gaining as many headlines, the mining sector has taken some of the froth off this morning’s moves as commodity prices continue to drift lower following the less-than-anticipated Chinese stimulus.
Asian markets were always going to have first shot at assessing the implications of the referendum on the pound, and overnight trading saw GBP/USD add another 100 pips to yesterday’s move. Although worries that the Bank of England’s timeline for interest rate rises have now lifted, the likelihood of major changes to the constitutional structure of the United Kingdom remain an iceberg on sterling’s radar.
Starting its trading life on the New York Stock Exchange today, Alibaba will take over the mantle as the largest US IPO. IG’s IPO market on Alibaba has seen a 28% premium being added to the $68 IPO price that Jack Ma and his advisers settled on last night. Considering this is a company that will start trading with earnings multiple of 44, it will have to hit the ground running in order to match its hype.
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EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.