US stocks end week sharply higher

Dmitry Lukashov IFC Markets

Dollar weakening accelerates on weak jobs report

US stock market ended solidly higher on Friday as weak May jobs report supported hopes of Fed interest rate cuts soon. The S&P 500 rose 1.1% to 2873.34, recovering 4.4% for the week. Dow Jones industrial advanced 1% to 25983.94. The Nasdaq rallied 1.7% to 7742.10. The dollar accelerated weakening as US economy added 75,000 new jobs in May, while 185,000 new jobs were expected, the Labor Department reported. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.5% to 96.568 but is higher currently. Futures on US stock indices point to higher openings today.

CAC 40 outperforms European indexes

European stocks resumed advancing on Friday amid rising hopes the Federal reserve and European Central Bank may ease monetary policies soon after recent round of weak data. Both the GBP/USD and EUR/USD accelerated their climbs but are lower currently. The Stoxx Europe 600 Index gained 0.9% Friday. The DAX 30 rose 0.8% to 12045.38 despite a downward revision by the Bundesbank of its growth projections for Germany. France’s CAC 40rallied 1.6% and UK’s FTSE 100 advanced 1% to 7331.94.

Hang Seng the leader among Asian indexes

Asian stock indices are rising today after the decision by President Trump to suspend tariffs on Mexican imports bolstered investors’ sentiment. Nikkei extended gains 1.2% to 21134.42 with yen slide against the dollar resuming. China’s markets are gaining after better than expected trade data for May: the Shanghai Composite Index is up 0.9% and Hong Kong’s Hang Seng Index is 2.2% higher. Australia’s All Ordinaries Index was closed for a holiday with the Australian dollar turning lower against the greenback.

Brent advances

Brent futures prices are edging higher today. Prices ended sharply higher on Friday buoyed by Baker Hughes report the number of active US oil rigs fell 11 to 789 last week: Brent for August settlement jumped 2.6% to close at $63.29 a barrel Friday, rising 2.1% for the week.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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.

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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.