First tariffs, now payrolls drive stocks lower

Chris Beauchamp IG

An abysmal set of payrolls have dealt a further blow to stocks reeling from tariff news, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks in full retreat as payrolls stick the boot in

Given how markets had been trading this morning after the tariff news, it would have taken a very solid payroll report to avoid further losses. As it was, today’s dismal number did nothing for sentiment. What really drove the gloomy mood this afternoon was the substantial set of revisions to recent months data. After days spent worrying about the impact of tariffs on prices, the fear is now that hiring is poised to collapse.

CAC40 and US small caps lead the losses

In selloffs, the heaviest losses are often seen in those markets that were the weakest on the way up. In Europe the CAC40 has lagged far behind its peers, and today it has slumped 3%, on course for a six-week low. Meanwhile, on Wall Street the Russell 2000 is once more in the doghouse. Lacking the profitability of its mega-cap cousins, the index’s members often the last to be bought and the first to be sold.

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Chris Beauchamp

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.