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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.