China trade data spark global growth concerns

Dmitry Lukashov IFC Markets

Dollar strengthening halts

US stock market pullback continued on Monday after disappointing Chinese data spurred global growth slowing concerns. The S&P 500 fell 0.5% to 2582.61. Dow Jones industrial slid 0.4% to 23909.84. The Nasdaq composite index dropped 0.9% to 6905.92. The dollar weakening resumed as US trade deficit with China soared to a record of $323.32 billion in 2018: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.1% to 95.58 but is higher currently. Stock index futures point to higher openings today.

Pound strengthens on expected Brexit deal rejection

European stocks pulled back on Monday on weak Chinese trade data. The EUR/USD joined GBP/USD’s continued advance ahead of UK parliament Brexit deal vote today, which is expected to be rejected. Both pairs are currently higher. The Stoxx Europe 600 index lost 0.5%. The DAX 30 slipped 0.3% to 10855.91. France’s CAC 40 slid 0.4% and UK’s FTSE 100 slumped 0.9% to 6855.02.

Hang Seng ahead of Asian indices

Asian stock indices are rising today following losses Monday after disappointing Chinese trade report. Nikkei rose 1.0% to 20555.29 after reopening with yen resuming its decline against the dollar. Chinese shares are higher after Beijing pledged to cut taxes and keep monetary policy flexible to provide stimulus as China’s economy slows down: the Shanghai Composite Index is up 1.4% and Hong Kong’s Hang Seng Index is 2% higher. Australia’s All Ordinaries Index gained 0.7% despite Australian dollar turning higher against the greenback.

HK50 rises above descending channel 01/15/2019 Market Overview IFC Markets chart

Brent rebounds

Brent futures prices are edging higher today with supply cuts from major oil producers OPEC and Russia providing support. Prices fell yesterday: March Brent crude lost 2.5% to $58.99 a barrel on Monday.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

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XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.