Yellen bounce keeps equities ticking higher

Chris Beauchamp IG

Equities continue to find buyers, a day after Janet Yellen prompted a rebound in risk appetite.

Stocks hold their ground
Will Yellen spoil the party on day two?
AstraZeneca hit by leadership woes

Investors have maintained their positive outlook this morning, as the after-effects of Janet Yellen’s testimony continue to resonate. US Treasury yields have taken a knock as investors scramble to review their outlook for Fed policy, and this drop in fixed income yields means that stock markets have become more attractive in comparison. There is the possibility that, having seen the market reaction, Ms Yellen might look to row back on some of her comments, but for now investors seem content that the Fed is still treading carefully. US CPI might also be a disruptive force, should it counteract the Fed’s view of inflation weakness as ‘temporary’. Still, the strong recovery in risk assets this week tends to reinforce the belief that this bull market has a lot further to run.

AstraZeneca sits at the bottom of the index this morning, as speculation mounts over its CEO, Pascal Soriot, and a potential move to an Israeli rival. Shareholder rebellions over pay, plus an apparently hefty sign-on bonus, are bound to make Mr Soriot weigh his options carefully. The irony of a move from a firm under pressure from the expiry of big-name patents to the world’s biggest generic drug maker will not be lost on investors. Ahead of the open, we expect the Dow to start at 21,558, 26 points higher from yesterday’s close.

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Chris Beauchamp

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.