Tech recovers and Gold moves back above $5,000

Chris Beauchamp IG

A low-key start to the week has nonetheless seen signs of life in tech stocks, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Tech stocks recover while Dow slips back below 50,000

It has been a quietly risk-on day for markets overall, following the Japanese election results over the weekend. While the Dow has failed to hold 50,000 so far today, a recovery in tech stocks suggests that the rotational trade in this bull market may be moving back in the other direction. With some time before Nvidia’s earnings round of tech reporting season, the focus this week shifts back to the macro picture, and a potentially Goldilocks combination of a weak jobs report and inflation data reinforcing hopes of a dovish Fed at the next decision.

Gold moves higher but bitcoin struggles

The rally in gold is back on following last week’s volatility. The metal has reclaimed $5,000, following Thursday’s second flush that seems to have provided the much-needed sentiment reset in precious metals. And on schedule, bitcoin’s bounce has stalled; a renewed surge in gold and silver is perhaps bitcoin’s biggest threat at present, stealing the limelight from the cryptocurrency and its peers.

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Chris Beauchamp

EUR/USD flat lines below 1.1900; divergent Fed-ECB expectations offer support

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1835-1.1830 region and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.1875 area, remaining nearly unchanged for the day and staying within striking distance of an over one-week high, reached on Tuesday, amid mixed cues.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold down but not out as focus shifts to more US data

Gold is back in the red near $5,050 early Thursday, having faced strong offers at around the $5,100 mark once again. Buyers keep a close eye on the mid-tier US Jobless Claims data and US-Iran geopolitical developments to regain control.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.