US stocks rise fourth session as 2-day talks wrap

Dmitry Lukashov IFC Markets

Dollar weakens after dovish Fed minutes

US stock market advanced fourth straight session on Wednesday as US-China talks wrapped by China pledging to buy “substantial” amount of US goods. The S&P 500 gained 0.4% to 2584.96. The Dow Jones industrial average advanced 0.4% to 23879.12. Nasdaq composite index rose 0.9% to 6957.08. The dollar weakened sharply after Fed minutes showed ‘many’ officials thought they could be ‘patient’ on interest rates going forward. 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, fell 0.8% to 95.136 but is higher currently. Stock index futures point to lower openings today.

SP500 tests descending channel 01/10/2019 Market Overview IFC Markets chart

European indices gain despite weak German data

European stock markets extended gains on Wednesday despite negative German data. Both GBP/USD and EUR/USD erased previous session losses with euro currently higher while Pound retreating against the dollar. The Stoxx Europe 600 closed 0.5% higher. Germany’s DAX 30 rose 0.8% to 10893.32 despite a decline in German exports in November, France’s CAC 40 gained 0.8% and UK’s FTSE 100 added 0.7% to 6906.63.

Asian indices mixed as China’s inflation slows

Asian stock indices are mixed today after US-China two-day trade talks concluded in Beijing. Nikkei fell 1.3% to 20163.80 as yen climb against the dollar continued. China’s stocks are falling after report China inflation slowed in December: the Shanghai Composite Index is down 0.4% while Hong Kong’s Hang Seng Index is 0.1% higher. Australia’s All Ordinaries Index extended gains 0.3% as the Australian dollar climb against the greenback endured.

Brent down despite US crude stocks dip

Brent futures prices are lower today. Prices rallied yesterday buoyed by reports the US crude stockpile fell 1.7 million barrels last week and December output from major oil producers dropped: February Brent crude rallied 4.6% to $61.44 a barrel on Wednesday.

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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.

Three scenarios for Japanese Yen ahead of snap election

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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.