Tech stocks are on the rise, as falling jobless claims help drive yields lower. Meanwhile, the FTSE 100 continues to outperform, with the construction PMI hitting the highest level since 2014. 

  • FTSE 100 outperforms, as construction PMI hits highest level since 2014
  • US jobless claims rise, but recent NFP figure highlights improving job market
  • Tech sector outperforms, lifting S&P 500 into fresh highs

The FTSE 100 is once again outperforming its mainland European peers, with another bout of sterling weakness coming despite allayed fears of a slowdown in the vaccination programme. A surge in UK construction activity comes as no surprise given the recent recovery, but that rapid expansion in the sector has done little to help bolster a pound that has clearly lost its mojo. While todays UK data helped reiterate a theme of economic improvement, the US jobless claims release did quite the opposite. A surprise rise for both this and last weeks initial jobless claims serve to highlight a stuttering economic recovery despite recent stimulus measures. Nevertheless, last week’s impressive 916k payrolls figure does highlight the improvements we are seeing in the US employment picture, with recent stimulus measures likely to help bolster the recovery as the vaccination push takes effect.

Tech stocks are helping to lift the wider market today, with weakening treasury yields providing upside for the yield sensitive sector. Despite a dramatic rise in yields over the course of February in particular, we have seen that upward trajectory ease significantly in a move that has alleviated fears around growth stocks. The sheer size of the tech sector means that any significant move plays a major role in boosting the US indices, with the S&P 500 reaching record highs thanks to the likes of Microsoft, Apple, Tesla, and Amazon. Tesla have enjoyed a welcome boost on the news that Joe Biden aims to set aside an impressive $100 billion for EV rebates in a bid to ramp up the transition from carbon to electric vehicles. The prospect of a new $2.25 trillion infrastructure package brings substantial benefits for some sectors, yet others will no doubt worry more about the rise in corporation tax that appears to be on the horizon. Nevertheless, with the past year having seen a huge global increase in fiscal spending, increased taxes appear to be somewhat of a foregone conclusion for the coming year. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD retains weekly gains trades above 1.2000

EUR/USD peaked at 1.2079, now stable in the 1.2030 region. The shared currency holds on to recent gains despite renewed demand for its American rival.

EUR/USD News

GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 

GBP/USD News

XAU/USD clings to modest gains around $1,780 despite USD strength

The XAU/USD gained traction in the early American session and climbed to a daily high of $1,780. Although the greenback started to gather strength in the second half of the day, the pair stayed relatively resilient and was last seen rising 0.35% on the day at $1,778.

Gold News

WeWork and Venmo join the Bitcoin craze while prices consolidate

The announcement by WeWork that it will begin accepting payments in select cryptocurrencies, including Bitcoin, Ethereum, USD Coin, Paxos, and several others, is another sign of adoption and follows the decision by Tesla to do the same

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

The Bank of Canada is widely expected to keep its policy rate unchanged at 0.25% on Wednesday. However, the improving economic outlook and recent remarks from officials suggest that the BoC could become the first major central bank to lay out a roadmap out of the ultra-loose policy.

Read more

Majors

Cryptocurrencies

Signatures