Equities have posted small gains so far this morning, with the FTSE 100 up 20 points, lifted by hopes of a Fed rate cut and continued inflows into housebuilder stocks.

European equities are enjoying small gains, as stock markets attempt to build on the rally seen in the wake of Powell's testimony yesterday. The Fed chief has cleared the way for a cut at the next meeting, although it still seems likely that it will be just a 25 bps ‘insurance' cut instead of a 50 bps dose of ‘shock and awe'. However, a stronger pound and euro, the flipside of the weaker dollar, have meant that indices on this side of the Atlantic have failed to match the bullishness displayed by the US, and the memory of profit warnings from earlier in the week is also serving to limit risk appetite. Rising Iran tensions have helped boost the price of crude oil, with a break above $60 likely to lead to more gains as investors keep a close eye on the geopolitical situation and rising US demand.

UK homebuilders continue to find favour after Barratt's update yesterday. The sector has received a boost after a period of weakness in construction, although those investors moving in now will have to be mindful of the potential disruptions arising from a no-deal Brexit. No deal has gone from being unthinkable to a definite possibility, and with the likes of Amber Rudd now conceding that it must remain an option, it looks like attitude in some parts of the Conservative Party is coming round to this view.

Ahead of the open, we expect the Dow to start at 26,913, 53 points higher from Wednesday's close.

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.


GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.


USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.


Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News