Soaring temperatures, soaring markets

Chris Beauchamp IG

Heading into the close, the FTSE 100 is 70 points higher, as the rally moves into higher gear around the world.

Brexit talks fail to bother the markets
European stocks finally get going
Nasdaq roars back into life

We should start Brexit talks every day, it seems. The long-awaited beginning of discussions between the UK and the EU has been greeted with an impressive bounce for both UK and European stocks. The rally today has been broad-based, with European markets seeing a return of buyers after weeks of indecision. An ongoing fall in the euro is certainly helping to make life easier for European stocks, while further sterling weakness is helping to lift the FTSE 100. The summer is supposed to be a tough period for stocks, with gains fleeting in duration, but the solid pickup in risk appetite at the beginning of the week is very encouraging, despite the lightness of the macro and corporate calendars.

After a 3% drop in the past two weeks, tech is once again in favour among US investors. In this market, 3% evidently counts as a healthy dip, with the Amazon M&A from Friday still spicing up the session as well. It is odd to see all the problems that were supposed to be hamstringing markets disappear with barely a passing reference uttered, but we should not be surprised; this bull market has survived everything that could be thrown at it, and it has come back time and time again. It is hardly likely to be different this time.

Author

Chris Beauchamp

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

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 climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

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.