FTSE 100 kicks off Q4 with record highs

Chris Beauchamp IG

The FTSE 100 put its best foot forward on day one of the fourth quarter, powered by gains for pharma stocks, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 surges to new record high

Pharma stocks have injected new life into the FTSE 100’s rally this week, with today’s gains complemented by a surge for JD Sports after Nike’s earnings last night. Investors have taken news that the sector will sell direct to US citizens as a way of turbocharging earnings overall, rather than worrying about the impact of reduced prices. European stocks continue to rediscover their strength too, underlined by the Dax’s surge to a one-week high.

US stocks shrug off shutdown

A weaker morning for US futures has given way to tentative gains. Once more bad news is good news it seems, after another shocked on employment data, this time from the ADP survey. Job growth in the US seems to have reached a nadir, and it is this that will have the Fed worrying that the current pace of cuts is not sufficient. The calls for a 50bps move will grow louder from here.

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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.