Muted session for stock indices amid profit taking

Chris Beauchamp IG

'Stock indices are beginning to run out of steam following six to seven weeks of straight gains', says Axel Rudolph, Senior Market Analyst at online trading platform IG.

Stock rally slows down ahead of weekend

“After six to seven weeks of consecutive weekly gains some European and US stock indices are beginning to show fatigue amid a $5 trillion 'triple witching' in US options coinciding with S&P 500 and Nasdaq 100 rebalancing. Traders are taking money off the table amid comments by New York Fed President John Williams, who said that it is premature to be thinking about a March rate cut. Further upside into year-end may still be in store, though, as China's industrial output growth hits 21-month highs, UK private sector output growth rises to a six-month high, and US private sector growth accelerates."

Fed, ECB, BoE and SNB out of the way but BoJ ahead

"This week the Fed, BoE, ECB and SNB extended their pause in interest rate hikes with some like the US central bank talking about future rate cuts but others like the ECB not doing so. Next week's Bank of Japan monetary policy meeting will be the main event on the economic calendar ahead of the festive season."

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

AUD/USD drops to one-week low, below 0.6950 on weak Aussie jobs data

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USD/JPY slides back below 158.00 as USD reverses post-CPI gains

USD/JPY extends the previous day's pullback from a three-week high, attracting follow-through selling and sliding below 158.00 during Thursday's Asian session. Traders remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. The US Dollar, meanwhile, reverses Wednesday's hot CPI-led gains to April 2025 highs as US bond yields retreat, further pressuring the currency pair.

Gold recovers to $4,150 as retreating US bond yields weigh on USD

Gold attracts strong buying during the Asian session on Thursday, snapping a three-day losing streak to a one-week low. Retreating US bond yields drag the US Dollar away from the April 2025 high, touched in reaction to Wednesday’s hot US CPI report, and boost the non-yielding bullion. That said, energy-driven inflation risks keep bets of a Fed rate hike firmly on the table, which should cap the precious metal.

Bitcoin falls on hot CPI: Why $80,000 support matters

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Stock futures just went red on the CPI. Here's what the bond market is pricing that equities haven't caught up to

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Has Bitcoin really escaped the macro forces it was built to fight?

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