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

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.