FTSE 100 charges onwards

Chris Beauchamp IG

Markets are back in rally mode as investors gird themselves for Nvidia's earnings, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 marches on to 11,000

There seems no stopping the FTSE 100. Another week like this and the index will top 11,000, just weeks after it first crossed the magic 10,000 level. It has the winning combination for investors right now – a lower valuation than pricey US markets, and key sectors driving that are much less vulnerable to AI-driven panic selloffs. Mining, defence and banking have all yet to be touched by an AI competitor, while its pharma stocks provide further heft and dividend payments too. It might be smaller than Nvidia, but it continues to charm global investors.

Bitcoin climbs 5%

Hopes of a bitcoin revival are running high again as the price enjoys its best day in about three weeks. The risk-on sentiment we are seeing in spades across indices was bound to spill over into this beaten-down asset, but even the highs of late January still seem a long way off.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

EUR/USD flatlines above 1.1500, awaits US jobs data

EUR/USD holds steady around 1.1505 in European trading hours on Tuesday. Markets remain cautious ahead of a slew of US jobs data, starting with the JOLTS Job Openings Survey later today. However, the downside appears capped by hot Eurozone inflation in July, bolstering the case for a European Central Bank rate hike at the next meeting.

Gold holds steady above $4,050; hawkish Fed bets favor bearish traders

Gold remains confined in a range below the $4,100 mark through the early European session as traders opt to wait for further developments surrounding the Middle East crisis. Meanwhile, the uncertainty over US-Iran peace talks continues to act as a tailwind for the safe-haven US Dollar.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.