FTSE 100 higher but European cousins outperform

Chris Beauchamp IG

It has been a day for luxury stocks in Europe, while US earnings have also aided the general rebound in risk appetite, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 lags behind as luxury stocks rally

The rebound in risk appetite has continued across the board today, shrugging off any further spat between the US and China, this time over cooking oil. But save for Burberry the FTSE 100 is feeling the absence of any luxury names in its ranks. Buying French political turmoil has been one of the standout winners of late, as the CAC40 soars towards a new high despite the ongoing governmental troubles.

Nvidia upgrade and bank earnings lift Wall Street

Bank earnings continue to provide proof of the strength of the US economy, with the IMF expecting more growth next year despite worries about the employment situation. Meanwhile, an upgrade for Nvidia has helped sentiment too, while investors took heart from ASML's earnings despite worries about China demand.

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Chris Beauchamp

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.