Rising energy prices have done little to stifle market optimism today, with improving US banks earnings and jobless claims helping sentiment.

  • Markets on the rise despite increased energy prices.

  • US banks rally, as Bank of America and Morgan Stanley earnings impress.

  • Jobless claims continue to fall.

Markets throughout Europe and the US have enjoyed a welcome day of positivity, with the FTSE 100 moving within touching distance of 19-month highs. Fears around energy prices and inflation appear to have eased for now, although today’s 5% rise in natural gas prices raise the risk that this respite may be brief in nature. The collapse of another three UK energy providers this week highlight the fact that prices are going to rise sharply for providers to stay in business. The business secretary has stated that forecasts of a mild winter could avoid the kind of squeeze seen in China. However, the risk of factory closures and a jump in the cost of living remain a distinct possibility if temperatures drop and usage heads upwards. Seven-year highs for unleaded petrol prices highlight ongoing inflationary pressures for consumers, with the continued rise in costs also likely hamper business margins.

US banking stocks are on the rise today, with third quarter earnings from Morgan Stanley and Bank of America on the rise after topping estimates. While margins have been hit thanks to lower interest rates, lower-than-expected losses and improved M&A income has helped drive improved earnings in the third quarter. Today’s jobless claims release helped highlight the upward trajectory of the US economy, with the first sub 300k initial claims figure since March 2020. Meanwhile, the decline in continuing claims brought about the lowest reading since the height of the crisis. Ultimately today’s jobless claims data helps allay fears that may have arisen off the back of Friday’s disappointing NFP figure.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more