SP500, Dow notch new records

Dmitry Lukashov IFC Markets

Dollar strengthening halted as budget deficit rose

US stocks extended gains on Wednesday despite reports US has met with China’s resistance to commit to buying a fixed value of US agricultural products as a part of the phase one deal. The S&P 500 added 0.1% to 3094.04. The Dow Jones industrial average rose 0.3% to 27783.59 led by 7% jump in Disney. Nasdaq gained 0.05% to 8482.10. The dollar strengthening halted as US federal budget deficit in October rose 34% from a year ago. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped less than 0.1% to 98.31 but is higher currently. Futures on US stock indices point to mixed openings.

DAX 30 led European indexes retreat

European stock indexes extended losses on Wednesday. EUR/USD continued its slide yesterday while GBP/USD halted its decline with both pars lower currently. The Stoxx Europe 600 slipped 0.2% led by bank shares. Germany’s DAX 30 fell 0.4% to 13230.07. France’s CAC 40 slid 0.2% and UK’s FTSE 100 lost 0.2% to 7351.21 as UK inflation declined from 1.7% to 1.5% in October, the lowest level in almost three years.

Hang Seng falls for 5th consecutive session

Asian stock indices are mixed today against the backdrop of weak data from China, Japan and Australia. Nikkei fell 0.8% to 23141.55 with yen advance against the dollar intact after report Japan's economy grew slower than expected in. Chinese stocks are mixed after reports China's economy grew slower in October: the Shanghai Composite Index is 0.2% higher while Hong Kong’s Hang Seng Index is down 1.2%. Australia’s All Ordinaries Index rose 0.6% as Australian dollar’s slide against the greenback accelerated after data showed Australia’s unemployment rate inched up to 5.3% from 5.2% in September.

Brent advance continues

Brent futures prices are extending gains today. Prices resumed advancing yesterday: January Brent crude rose 0.5% to $62.37 a barrel on Wednesday. The American Petroleum Institute late Wednesday report, which was released a day later than usual because of Monday's Veterans Day holiday, estimated US crude supplies fell by 541,000 barrels last week. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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.