FTSE 100 surges but tech selloff goes on

Chris Beauchamp IG

The selling isn't over in US tech names but the FTSE 100 has had another stellar day, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 reaches new high

The FTSE 100 has happily surged to a new high while the rest of the world seems consumed by worries about AI and what Powell might say at Jackson Hole. After two weeks of a dash back to growth stocks, the dividend payers of London’s top index have regained their lustre; solid but perhaps somewhat dull stocks like United Utilities and Unilever dominate, a dramatic change from the tech-fuelled gains seen of late.

Magnificent 7 stumble further into the red

It has been a miserable week for tech stocks in the US, which have caught a bad case of the AI chills. The mini-panic induced by Altman’s comments and the MIT article have not yet subsided, though in most cases this is still a trimming of recent gains rather than any bigger rout. It is August, after all, and as thoughts turn to Jackson Hole on Friday we are bound to see some prudent derisking.

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Chris Beauchamp

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.