FTSE dragged lower by earnings impact

Joshua Mahony MSTA Scope Markets

The FTSE 100 has suffered at the hands of a strong pound and disappointing earnings environment. Meanwhile, with Apple pledging to make huge investments in the US economy, it comes as no surprise that US markets remain in favour

FTSE trades lower, with earnings continuing to bite
Cryptos on a comeback following recent decline
Apple boosts US growth outlook

The FTSE 100 is spending yet another day in the red, within a week that has seen the headline UK bourse trading in a largely downbeat fashion. Alongside a strengthening pound, the FTSE has also been struggling to overcome a raft of disappointing earnings reports, with yesterday’s Burberry figures continuing to play a role while Associated British Foods led the index lower after a weakened outlook for its sugar department. The outperformance within their Primark business did little to appease investors, with weak EU sugar prices proving a drag on business going forward.

Cryptocurrencies appear to be back in the driving seat, with a resurgence in Bitcoin being joined by a whole plethora of Alt-Coins. Fears over the demise of the sector have been rife since their inception, and with back-to-back double digit declines this week, many believed we were seeing the beginning of the end for this latest bubble. However, we are seeing signs of a recovery from here, with a host of money moving back into the crypto space as traders look to take advantage of bargain basement prices.

Apple has led the way in a post-tax reform world, with their overnight announcement of a supposed $350 billion ‘contribution’ to the US economy. To company’s decision to invest $30 billion to expand its US operations highlights the growing confidence companies have that the tax reforms will help drive greater prosperity in the US. While investors would have hoped for the improved profit outlook to be spent on stock buy-backs or dividends, yet Apple’s decision to award each employee a $2,500 stock grant remains an injection of cash into the economy of sorts. With firms investing more in business and their employees, it is evident why traders are flocking to invest their money on the other
side of the Atlantic.

Author

Joshua Mahony MSTA

Scope Markets

Joshua Mahony is Chief Markets Analyst at Scope Markets. Joshua has a particular focus on macro-economics and technical analysis, built up over his 11 years of experience as a market analyst across three brokers.

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.