Joshua Mahony MSTA
Scope Markets
The FTSE has suffered at the hands of a stronger pound, with the likes of the Nasdaq and S&P 500 rising thanks to a sharp drop in the dollar.
- Nasdaq and S&P 500 hit fresh high
- US inflation sinks the dollar
- Miners help boost the FTSE
The Nasdaq and S&P 500 have hit fresh record highs today, as US indices enjoy the repercussions of another down day for the US dollar. On a day where US data was always likely to take precedence, the disappointing inflation data has certainly done little to help interest rate hike expectations, with the dollar sinking in response. With core US inflation rising by only 0.1% over the month, the case for a US rate rise isn’t necessarily boosted heavily by today’s inflation data, yet with retail sales rising sharply in September, there is reason to believe the consumer-reliant US economy will continue to grow healthily in the coming months.
Chinese trade data has, by and large, kept the FTSE afloat today, with a sharp rise in imports and exports driving the FTSE mining sector higher, with Rio Tinto, Glencore, and Anglo American the three market leaders today. With a big week ahead for Chinese data, we are likely to see the influence of the mining sector play a bigger role in FTSE fortunes.
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.