The new week has seen stock markets struggle to make headway, as investors fret about the hectic days to come, says Chris Beauchamp, chief market analyst at online trading platform IG.
Stocks wobble as busy week begins
“The FTSE 100 has pushed back into positive territory after a drop on the open, while in the US stocks have endured a shaky start. A glance at the calendar for the week would be enough to deter all but the most swashbuckling of investors from taking new positions, so it is hardly surprising to see some of the recent bullishness fade away. Investors will have a better idea (we hope) about the outlook once the central bank decisions, job numbers and earnings reports are in the bag.”
Nasdaq 100 falters at six-week highs
“Given the big tech earnings this week, it is not surprising that the Nasdaq 100 has been unable to hold the gains from Friday’s session. All eyes are now on the 200-day moving average – it has been just over a year since the index last traded above this indicator, and while not foolproof, it would send a strong message for many investors that, for now at least, the selloff of the past year has abated.”
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
BOE set to hike key rate to 4.25%, how will Pound Sterling react? – LIVE
The BoE will likely deliver a 25 basis points (bps) rate hike, raising the key policy rate from 4.0% to 4.25%. It will be the eleventh straight hike as the bank assesses whether it's time to pause the tightening cycle. In the absence of a press conference, the vote split will be watched closely.
EUR/USD consolidates gains below 1.0900
EUR/USD has retreated modestly and gone into a consolidation phase below 1.0900 following the rally witnessed in the Asian session. Ahead of the mid-tier data releases from the US, the US Dollar stages a technical correction and makes it difficult for the pair to stretch higher.
Gold extends Fed-inspired bounce off $1,960 on softer yields
Gold price gathered bullish momentum and climbed above $1,980 early Thursday before retreating modestly. The benchmark 10-year US Treasury bond yield is up 1% on the day following Wednesday's sharp decline, limiting XAU/USD's upside for the time being.
Arbitrum's ARB token goes live, here is what to expect
The Arbitrum ARB governance token airdrop goes live marking the beginning of the Ethereum layer-2 solution’s transition into decentralization.
Markets yet to agree on whether Fed was dovish or what?
The Fed raised the rates by 25bp, as broadly priced in, but Fed Chair Jerome Powell signaled that there would be another 25bp hike on the wire before this tightening cycle ends. QT and dot plot were unchanged.