Joshua Mahony MSTA
Scope Markets
Tech stocks are the laggards as we await earnings from the likes of Apple, Amazon, and Alphabet. Meanwhile, the pound is on the rise as Covid cases continue to fall.
- Nasdaq lags ahead of Tech earnings
- FOMC meeting gets underway
- GBP on the rise as Covid cases continue to fall
US tech stocks have led the declines this afternoon, with investors clearly showing a degree of hesitancy ahead of key earnings from the likes of Apple, Microsoft, and Alphabet. Tech names have been a major outperformer of late, with the Nasdaq reaching record highs as traders head away from value names as Delta Covid cases rise. The Federal Reserve come into play as their two-day monetary policy meeting gets underway. With inflation concerns raising the risk of a hastier withdrawal of monetary accommodation, we are likely to see a cautious approach given the potential for tapering talk tomorrow.
In the UK, we have continued to see case numbers decline, with a week-on-week drop of 21.5% raising confidence in the economic recovery. However, Boris Johnson’s reminder to not jump to “premature conclusions” highlight the fears of a surge as last week’s reopening efforts come into play. However, market sentiment appears to be improving for the pound, with the currency rising into a 12-day high against the dollar and euro. That optimism has also led to an impressive outperformance for the domestic UK-focused bus companies, with many hoping that this decline in Covid cases will ensure restrictions can remain at bay as businesses get back to normal.
This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regards to past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.