New FTSE record but Wall Street struggles

Chris Beauchamp IG

While the FTSE 100 powers higher, Wall Street remains contained following its rebound earlier in the week, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 record high comes despite gloomy BoE

The difference between the FTSE 100 and the UK economy have been starkly laid bare today. While the index has surged to new record highs thanks to solid earnings today and yesterday from index heavyweights AstraZeneca and GSK, the outlook for UK plc continues to be grim. Sterling’s weakness has undoubtedly boosted the index’s attractiveness for global investors, who continue to relish the opportunity to go bargain-hunting in UK names. Any relief among individual Britons regarding lower rates is likely to be tempered by the warnings about weaker growth and higher inflation.

Wall Street rally slows

US stocks have run into some turbulence after their rebound from Monday’s lows, weighed down by some gloomier earnings and the impending payrolls report. Investors have been able to put tariff worries aside after Monday’s rout, but they are sure to rear their head again, and the damage to stocks next time might be more long-lasting.

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Chris Beauchamp

EUR/USD off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.