Goldman earnings prompt investors to worry

Chris Beauchamp IG

Heading into the close the FTSE 100 is 7 points lower, while the Uber grey market has begun to feel the pressure from Lyft’s decline.

Equities move lower following Goldman earnings
Mnuchin comments keep investors on edge
Uber grey market suffers a fall

Weaker Goldman Sachs figures and a warning from the US Treasury Secretary about the likelihood of a new deal between the US and China have helped equities to move lower, frustrating the hopes of those that thought today might see the start of a triumphal procession back to record highs for the S&P 500. Caution prevails, still leaning towards overall optimism, and given how well JPMorgan has done investors seem content to view the vampire squid’s figures as a problem of its own making, and not something symptomatic of broader problems in the US banking industry. The back-and-forth of China negotiations leaves markets vulnerable to comments about progress or the lack thereof, but who wouldn’t
be surprised if sufficient progress is made this week so that the President can issue a triumphant tweet, get US indices back to record highs and send America off to the Easter holidays with a spring in its step?

IG’s Uber grey market has seen some sellers arrive, pushing the price down by more than 4.5% on the day so far, suggesting a market cap of around $102 billion for the taxi service. With Lyft’s post-IPO retreat turning into a rout it is not surprising to see clients become more sceptical about the potential IPO-day performance of Uber.

Author

Chris Beauchamp

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.