Selloff halted in its tracks

Chris Beauchamp IG

Tuesday's losses are being reversed thanks to some dovish Fed talk and a weaker ADP report, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Stocks recover and volatility slumps in turnaround for risk assets

What a difference a day makes. Yesterday it seemed like September was about to see a cocktail of worries unleashed upon investors, and yet today this late summer storm seems to have dissipated. Stocks are mostly up, particularly in the US, as is gold, while oil and volatility are both lower. The question must be asked, how much of yesterday’s angst was just a combination of ‘back to school’ for markets and the usual ‘first day of the month’ syndrome? Bond market troubles don’t disappear overnight, but yesterday’s surge in yields was nothing compared to 2022, so perhaps everyone just got a little overexcited.

Fedspeak halts dollar rally

Just as night follows day, so a dovish Fed speech is here to calm troubled waters from Warsh’s Jackson Hole outing. John Williams’ stance has helped to soothe nerves today, giving a particular boost to rate-sensitive US small-cap stocks, while putting the dollar firmly on the back foot against the yen. A soft ADP figure helped too, and now all eyes are on Friday’s payrolls to back up the view.

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.

GBP/USD trims losses, approaches 1.3500

GBP/USD adds to the multi-day negative streak, although it has managed to bounce off earlier four-week lows near 1.3470 on Wednesday. Meanwhile, Cable’s deep correction comes despite the tepid performance in the Greenback and the persistent geopolitical concerns.

EUR/USD treads water just below 1.1600

EUR/USD now alternates gains with losses near the 1.1600 region following the closing bell in European markets on Wednesday. The pair has managed to rebound from earlier two-week lows around 1.1560 in tandem with the loss of momentum in the US Dollar.

Gold meets initial resistance near $4,400

Gold continues to regain ground lost and sets its target on the $4,400 mark per troy ounce on Wednesday. The yellow metal’s rebound comes amid modest losses in the US Dollar, steady geopolitical uncertainty and mixed US Treasury yields.

WTI advances to mid-$90.00s, fresh high since July 24 amid escalating US-Iran tensions

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – scales higher for the third straight day – also marking the fifth day of a positive move in the previous six – and climbs to a fresh high since July 24 during the Asian session on Wednesday.

Crypto Today: Bitcoin, Ethereum, XRP edge lower as renewed US-Iran tensions weigh

The cryptocurrency market is pulling back broadly on Wednesday as investors adopt a cautious stance, with Bitcoin consolidating near its short-term support at $77,000. Ethereum remains under pressure, slipping toward $2,400. Ripple is also trending lower.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.