Stocks rally but crypto assets struggle

Chris Beauchamp IG

Results from Nvidia and a September jobs report appear to have sounded the all clear for markets, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stocks rally as key events recede into the past

Now that we are past the Nvidia earnings and payroll release, it feels like markets can rally again. It seems remarkable that just a 5% pullback can reset sentiment sufficiently for markets to react positively to earnings, but that is what has transpired. Stocks are up, almost uniformly across the board, while volatility is down. This is classic risk-on behaviour. If investors are still worried that the Fed won’t cut in December, they’re not showing it.

Crypto assets fail to join the party

It might be rally time for stocks, gold, oil and others, but the joy has not spread to cryptocurrencies, which have mostly struggled all day. Neither Nvidia results nor the payrolls report have too much relevance on crypto assets directly, but it is perhaps a sign of how weary investors have become in recent months, having seen the space struggle even as stock markets make record highs.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro clings to the bid bias above 1.1500

EUR/USD has picked up pace, reversing Monday’s decline and advancing past the 1.1500 barrier on Tuesday. In the meantime, hopes for a diplomatic solution to the Middle East crisis keep the US Dollar under modest downside pressure, helping spot in its recovery.

USD/INR: Indian Rupee sits at monthly highs above 95.00 after RBI's neutral hold

Indian Rupee is hanging close to its highest level in a month just above the 95.00 level against the US Dollar on Wednesday, holding gains after the Reserve Bank of India (RBI) held the Repo Rate at 5.25%, as expected, maintaining a neutral stance amid still-modest inflation.

Why the WTI sell-off may be hiding a supply warning

Prices for the barrel of the American Oil benchmark have fallen sharply as hopes of a US-Iran agreement have resurfaced, but a deeply backwardated Oil curve, tight Cushing stocks and light speculative positioning all warn that the sell-off may have gone too far.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.