Fresh woes for the FTSE 100

Chris Beauchamp IG

The pain for the FTSE 100 continues, though from a different angle today, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

FTSE 100 stumbles as yields rise

Yesterday it was US yields bolstering the dollar, but today the FTSE 100 has taken a knock as UK and European yields move higher, slamming dividend payers in London’s premier index. Hopes had been high that stronger commodity prices might help the index on its way back to 11,000, but a new challenge of rising yields has arisen instead, dulling the appeal of many names. A more mixed tone prevails in global stocks thanks to more tech weakness, with the mood darkened by renewed comments from the new Fed chair, who continues to lean on the need to fight inflation.

Oil prices resume their fall

If oil were to continue dropping at the rate it has in the past eight weeks then inflation might not be such a problem anyway. While yet to break through recent lows, a trap door moment does appear to loom for Brent and WTI. Despite their differences, the US and Iran at least continue to talk about talking, while a cautious ceasefire continues to hold in the region.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD stays offered, breaks below 1.1400…again

EUR/USD adds to Tuesday’s slight losses and drops below the 1.1400 yardstick in the latter part of Wednesday’s NA session. The pair’s decline comes in response to the persistent recovery in the US Dollar, which seems to have met extra support following the cautious tone from Fed’s Warsh in his comments at the ECB Forum.

Gold recovers but sellers hold the grip

Gold keeps the bullish performance in place on Wednesday, although is now giving away part of its earlier advance past the $4,100 mark per troy ounce. The precious metal’s marked rebound comes despite the US Dollar’s bid bias, higher US Treasury yields across the curve and positive headlines from the Middle East.

A preview of NFP

The number is of much greater importance than usual as the Fed moves away from a forecasting framework and towards a current-data / rebuilding-credibility framework.

Crypto Today: Bitcoin, Ethereum, XRP stay under pressure as investors turn more risk-averse

The cryptocurrency market trades under intense headwinds on Wednesday, led by Bitcoin’s (BTC) deepening sell-off below $60,000. The Crypto King hovers above $58,000.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.