Miners offset Oil weakness for FTSE 100

Chris Beauchamp IG

Gains for copper and gold have helped miners to offset weakness in oil stocks, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 gains despite oil sector weakness

Oil’s torrid day has weighed heavily on the FTSE 100, dragged lower by BP and Shell, but on the plus side pharma, defence and mining have all helped to support the index. Gold continues to break records, buoyed by the continued easing by central banks around the globe, while its less glamorous cousin copper has made strong gains today, boosting Antofagasta and others. Another attempt to hit record highs seems on the cards for the FTSE 100.

Carnival falls despite earnings beat

Investors have chosen to disembark cruise titan Carnival despite a boost to its full-year outlook. The story echoes so much of the US stock market at present – a strong recovery from April’s panic low, and new multi-year highs, but as concerns mount about the outlook for consumer spending, stocks like Carnival are going to find it harder to keep the market on board with its positive narrative.

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Chris Beauchamp

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

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: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

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.