Stocks drift into the red

Chris Beauchamp IG

Much of the exuberance seen earlier in the week for stocks has faded, with weakness in retailers and a swathe of ex-dividend names hitting the FTSE 100, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Exhaustion sets in for stocks despite drop in oil and yields

“The bounce in stocks has slowed dramatically, though the reasons to buy keep coming through. First it was CPI, then retail sales and PPI, and now comes a fresh fall in oil prices and yields, the two chief bugbears of stocks in recent months. Jobless claims rose to their highest level since mid-August, another sign of a cooling in the US economy, and a further brick in the wall of expectations that the Fed is now on pause for the foreseeable future.”

FTSE 100 slips on ex-divs and poor updates

“A host of heavyweight dividend payments today put the FTSE 100 on the back foot from the word go, but sentiment on the index continues to sour following Burberry’s numbers this morning. The downturn in luxury spending is not exactly applicable to most stocks in the index, but where luxury spending goes, other spending is sure to follow, putting pressure on the index’s other retail names, a point underlined by WalMart’s numbers today in the US.”

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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.