Equities run towards the weekend

Chris Beauchamp IG

Yesterday’s ‘sea of red’ has been washed away, replaced by an avalanche of green aross global markets as investors step right back on to the equity rally train.

Stock markets stage a 180-degree turnaround from Thursday’s losses
Europe leads the way, but gains solid across Wall Street as well
Earnings season to provide a hurdle for equities?

It seems incredible to report, but, for US indices at least, the latest ‘dip’ (that one from yesterday of about eight hours) has already been bought. Yet again al the things that stock markets seemed to worry about yesterday don’t matter today – a hawkish Fed, rising Delta cases and the imminent arrival of US earnings season have all been brushed aside as Friday’s trading ends in Europe with markets in bullish form, while on Wall Street stocks have a definite spring in their step. Even the slowing growth fears that apparently motivated Thursday’s sudden ‘air pocket’ for stocks have been thrust aside, and the S&P 500 is now contemplating new record highs with a vigour that seemed implausible just 24 hours ago. European stocks have really found a new lease on life today, which comes despite the growing signs of a crisis in the continent’s fight against Covid-19. Inflows into equities have been strong all year, but neither they nor the rally itself show any sign of slowing down.

Crude oil is also moving to the upside once again, making it a day for growth assets, those whose gains are predicated on a rebounding global economy. Despite a weaker UK GDP figure for May this morning the faith in the recovery remains undimmed. Next week’s earnings from US banks should provide further information on this theme, but with the bar having been set pretty high thanks to Q1’s good numbers stock markets might yet face an uphill struggle in the short-term.

Author

Chris Beauchamp

EUR/USD hits two-day highs near 1.1820

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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.

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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.