SP500 snaps three session win streak

Dmitry Lukashov IFC Markets

Dollar weakens as Trump calls for deeper rate cuts

US stock indexes pulled back on Tuesday despite president Trump’s confirmation Tuesday that he was looking at tax cuts, including cutting payroll taxes. The S&P 500 fell 0.8% to 2900.51. Dow Jones industrial lost 0.7% to 25962.44. The Nasdaq retreated 0.7% to 7948.56. The dollar strengthening reversed as president Trump said the Federal Reserve should consider deeper cuts to key interest rates, of around 1%: 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, lost 0.2% to 98.15 but is higher currently. Stock index futures point to higher market openings today.

FTSE 100 leads European indexes retreat

European stocks recovery faltered on Tuesday as Italian Prime Minister Giuseppe Conte announced his resignation from the government. Both the EUR/USD and GBP/USD turned higher yesterday and both pairs are lower currently. The Stoxx Europe 600 ended 0.7% lower as Italy’s coalition government between anti-immigration Lega party and the anti-establishment Five Star Movement (M5S) unraveled after Matteo Salvini, deputy prime minister and leader of Lega party, called for the vote and a new general election last week. The German DAX 30 lost 0.6% to 11651.18. France’s CAC 40 slid 0.5%. UK’s FTSE 100 fell 0.9% to 7125.

Australia’s All Ordinaries Index leads Asian indexes retreat

Asian stock indices are mostly in negative territory today. Nikkei lost 0.3% to 20618.57 despite resumed yen slide against the dollar. Chinese stocks are mixed: the Shanghai Composite Index is up 0.03% while Hong Kong’s Hang Seng index is 0.04% lower. Australia’s All Ordinaries Index gave up most of previous session gains falling 0.9% despite Australian dollar’s move lower against the greenback.

Brent up

Brent futures prices are rising today. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 3.5 million barrels last week. Prices rose yesterday: October Brent gained 0.5% to $60.03 a barrel on Tuesday. 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.