Stocks bounce back after Credit Suisse takeover

Chris Beauchamp IG

After a shaky start, equities have rallied, while a weaker dollar has helped the FTSE 100’s mining contingent to bounce, says Chris Beauchamp, chief market analyst at online trading platform IG.

Stocks claw their way back into the green

“What began as a very ‘sea of red’ kind of day has turned into a rebound, with stocks clawing back losses. Ultimately, while it is a shock to see a global bank disappear so quickly, it is reassuring to see governments and regulators moving quickly to seal off any source of further contagion. And after the ECB last week, investors seem relaxed about the prospect of a 25bps hike from the Fed this week, though they will hope for some fairly dovish commentary to go with it.”

Softer dollar helps mining stocks

“The big miners dominate the London leaderboard today, as the dollar drops back on expectations of a more dovish Fed on Wednesday. This is still the big unknown, but there is good reason to think that the Fed will look to rein in its hawks following last week’s turmoil. Should the hawks win out, then we can expect more fireworks.”

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Chris Beauchamp

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.