Equities retreat on global slowing concerns

Dmitry Lukashov IFC Markets

Dollar weakens after weaker than expected jobs data

US stock market extended losses fifth session in a row on Friday with weak labor market and China export data undermining market sentiment. S&P 500 slid 0.2% to 2743.07, closing 2.2% lower for the week. Dow Jonesindustrial slipped 0.1% to 25450.24. The Nasdaq shed 0.2% to 7408.14. The dollar strengthening reversed on a weaker than expected reading of just 20,000 new jobs in February. 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, lost 0.2% to 97.357 but is higher currently. Futures on US stock indexes point to mixed openings today.

DAX 30 sags less than other European indices

European stocks fell further on Friday weighed by weak German data. The GBP/USD continued sliding whileEUR/USD turned higer with no change in dynamics for both pairs currently. The Stoxx Europe 600 Index tumbled 0.9%. The DAX 30 slid 0.5% to 11457.84 as German factory orders fell 2.6% over month in January when an increase was expected. France’s CAC 40 tumbled 0.7% and UK’s FTSE 100 lost 0.7% to 7104.31.

EU50 tests MA(200) 03/011/2019 Market Overview IFC Markets chart

Shanghai Composite leads Asian indices gains

Asian stock indices are mostly higher today. Nikkei rose 0.5% to 21125.09 with yen resuming its slide against the dollar. Chinese markets are higher after China’s central bank on Sunday pledged further monetary stimulus by spurring loans and lowering borrowing costs. The Shanghai Composite Index is up 1.9% and Hong Kong’s Hang Seng Index is 0.8% higher. Australia’s All Ordinaries Index fell 0.4% as the Australian dollar continued its climb against the greenback.

Brent up

Brent futures prices are higher today supported by OPEC cuts. Prices ended lower on Friday despite the Baker Hughes report that the number of active US rigs drilling for oil fell by 9 to 834 last week: Brent for May settlement fell 0.8% to close at $65.74 a barrel Friday, gaining 1% for the week.

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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

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

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.