Global market rally sees fresh highs

Chris Beauchamp IG

The Dow and FTSE 100 have both clocked up new records today, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 steady at record highs

While tech stocks come under pressure on Wall Street the FTSE 100 has managed to hold at the record high set earlier today. Government turmoil in the US is set to give way to more drama at Westminster, though for now any market jitters are confined to the area of gilt yields. There has been a solid recovery in Europe too, as the global market rally enters a new phase

Dow climbs to new peak and gold surges

The strong rally in tech earlier in the week has given way to a new surge for the Dow, bolstered by expectations that Congress will bring the government shutdown to an end. The momentum trades have been given new life this week, as seen by the revival in gold prices, though this works both ways as oil traders have seen this afternoon. The return of US data next week might provide a speed bump, though the signs of a weakening economy continue to be seen, leaving a December Fed cut a strong possibility.

Author

Chris Beauchamp

EUR/USD climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.