FTSE 100 scales new heights & Oil surges

Chris Beauchamp IG

It has been another stellar session for the FTSE 100, while oil prices are leaping higher on geopolitical tensions, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100’s record run continues and tech rebounds

Weaker UK inflation and strong results from star performers in the defence and mining sector have propelled the FTSE 100 to yet more new highs. It is a firm risk-on day for global markets anyway, which seem to be unfazed by the continued military buildup in the Middle East. Yesterday’s sharp reversal in the VIX has heralded a revival of bullish momentum across the board, but it looks like the inevitable dip buying in tech stocks has finally begun.

Oil and precious metals surge

The curious feature of today’s action is how oil, gold and silver appear to be reacting to the ongoing deployment of US forces alongside the rally in stocks. Reports pointing to major military action naturally raise the risk of some kind of closure of the Hormuz straits, and while an oil rally has been an off again/on again move for some weeks, sustained action in the region is likely to precipitate a significant move higher in prices.

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Chris Beauchamp

EUR/USD retakes 1.1800 on renewed USD weakness

EUR/USD gains ground after three days of losses, re-attempting 1.1800in the European trading hours on Thursday. The US Dollar sees fresh selling interest across the board, despite hawkish Fed Minutes, as the market mood improves and supports the pair. US Jobless Claims data, Fedspeak and geopolitics remain in focus.

GBP/USD recovers above 1.3500 amid better mood

GBP/USD finds fresh demand and rises back above 1.3500 in the European session on Thursday. Improving risk sentiment and renewed US Dollar weakness are helping the pair recover ground ahead of mid-tier US data releases and Fedspeak.

Gold clings to gains above $5,000 amid safe-haven flows and Fed rate cut bets

Gold sticks to modest intraday gains, above the $5,000 psychological mark, through the first half of the European session, though it lacks bullish conviction amid mixed cues. The third round of US-mediated negotiations between Ukraine and Russia concluded in Geneva on Wednesday without any major breakthrough.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.