Stocks higher but Oil slumps again

Chris Beauchamp IG

The final trading day of August is seeing more gains for stocks, which have staged an impressive rebound from the disorderly rout four weeks ago, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks finishing August on a high note

“August is finishing in a very different form to how it began. While the Nikkei 225 is still down for the month by 1.2%, itself a significant achievement, the FTSE 100, Dax, Dow and others are all in positive territory for the month. The summer squall of early August has been forgotten, and with US economic data still looking strong, and rate cuts on the way, investors remain confident about the near-term outlook.”

Oil slumps as OPEC pledges to increase production

“Another see-saw week for oil prices is ending with the commodity firmly on the back foot. Hopes of a sustained rebound on stronger demand seem to have been definitively dashed as OPEC pledges to boost production from October. This is good news for consumers, but the oil majors will fear a hit to margins in coming quarters.”

Author

Chris Beauchamp

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

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.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.