Green start for UK stocks

David Cheetham XTB UK

The FTSE 100 is trading higher by around 15 points this morning as UK blue chips have begun the week in a positive mood. The pound is little changed so far today after closing Friday at its highest level of the year against the US dollar, as Brexit secretary David Davis begins a second round of negotiations in Brussels this morning.

Strong Chinese data boosts Miners

Data released overnight from China has boosted Anglo American and Glencore since the open with the mining stocks both sitting on gains of approximately 2%. The latest GDP figures from Beijing show an annualised rise of 6.9%, which was inline with the previous reading and slightly better than consensus forecasts. The industrial production number was arguably even more positive in showing an increase of 7.6% year-on-year, matching the best figure seen in 2017 and exceeds all readings last year. Whilst there remains a high degree of skepticism over the accuracy of data points from the Far East, the initial reaction has been positive and attracted buyers into London-listed stocks with exposure to China.

ITV sees stock rise on new CEO appointment

The best performing stock on the leading index in London is ITV, with the broadcaster trading higher by 3% after announcing Carolyn McCall as its new chief executive. Previous CEO Adam Crozier left last month and news that Ms McCall, who is currently the boss of budget airline EasyJet, will take over the reigns in the new year and this has been greeted warmly by investors. Rolls Royce currently sits at the foot of the FTSE 100 leaderboard with the manufacturing firm lower by more than 1% and retesting the 900 handle.

Author

David Cheetham

XTB UK

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.