HSBC leads FTSE 100 slide

Joshua Mahony MSTA Scope Markets

The pound has pushed higher despite a weaker jobs report than expected this morning. HSBC has led the FTSE 100 losses, with trade war concerns continuing to bite. Meanwhile, cryptocurrencies come back into vogue amid recent resurgence

FTSE 100 fall, as pound punches higher
HSBC the big loser as trade war hurts outlook
Cryptos begin to bite back, as speculators start to pile back in

Global markets are in the red today, with fading hopes of an impending breakthrough between the US and China putting off bulls in a day devoid of optimism. The pound has a been a big outperformer today despite a weaker than expected UK jobs report in the morning, with sterling punching into a two-week high against the dollar. The inverse relationship between the pound and FTSE 100 means that UK stocks have also got that FX factor dragging them lower.

HSBC has been the big underperformer in the FTSE 100 today, as the bank suffers at the hands of continued trade uncertainty between the US and China. The bank straddles Asia and the West, which brings an acute susceptibility to the slowdown in China. Interestingly, the bank posted a more than healthy 16% rise in pre-tax profits, yet traders remain sceptical given the negative impact the US-China trade spat is having.

Cryptocurrencies appear to have found a footing this month, with the likes of Bitcoin and Ether gaining ground over the past two trading days. The dollar weakness story seen throughout much of the commodity and FX markets will certainly help things, yet many will see this as the beginning of a bullish phase for these unloved markets. With Bitcoin up over 17% in less than two-weeks, we are now starting to see traders jump on-board to avoid missing out on a potential bull run for cryptos.

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.