FTSE 100 stumbles but Dax and S&P 500 keep rising

Chris Beauchamp IG

Investors await news of the French government this afternoon, while watching the year’s strong performers make yet new highs, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 edges back after strong run

The FTSE 100 has enjoyed a decent couple of weeks, but it looks like it has run out of momentum for the moment. A dearth of corporate news isn’t helping matters either. Meanwhile, investors can be forgiven for focusing on France, where the prime minister faces the likely collapse of his government.

While the CAC40 has managed to struggle higher of late, the contrast with a soaring Dax could not be more stark. The latter index has gained over 20% this year, but it is perhaps more a story of French weakness than overall German strength. Certainly, the German economy continues to struggle, but it is political turmoil and the travails of the luxury sector that has hobbled its Gallic counterpart’s stock market.

Semiconductor names show signs of life

Having notably underperformed the broader US indices of late, it might be the turn of semiconductor stocks to lead the drive to fresh highs once more. It’s not as if US indices have needed much help given the latest record highs, but with the Fed continuing to ease policy, the environment for the classic risk-on sector seems to be getting brighter.

Author

Chris Beauchamp

EUR/USD plummets to 1.1840 on US NFP

EUR/USD’s selling momentum now picks up pace and rapidly hits the 1.1840 region on Wednesday. Indeed, the pair’s decline comes amid rising buying pressure on the US Dollar in the wake of firmer-than-expected results from US NFP in January.

GBP/USD approaches 1.3600 on USD-buying

GBP/USD adds to Tuesday’s pullback and trades closer to the 1.3600 support on Wednesday. That said, Cable’s extra downside traction comes against the backdrop of renewed strength in the Greenback as investors assess the latest US NFP data.

Gold trims gains post-NFP, targets $5,000

Gold rapidly reverses initial gains and retreats to the vicinity of the $5,000 region per troy ounce amid further gains in the Greenback and rising US Treasury yields, all following the latest US NFP readings.

Ripple Price Forecast: XRP sell-side pressure intensifies despite surge in addresses transacting on-chain

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.

S&P 500 at 7,000 is a valuation test, not a liquidity problem

The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.

Bitcoin price slips below $67,000 ahead of US Nonfarm Payrolls data

Bitcoin price extends losses, and trades below the lower consolidating boundary at $67,300 at the time of writing. A firm close below this level could trigger a deeper correction for BTC. Despite the weakness in price action, institutional demand shows signs of support, recording mild inflows in ETFs so far this week.