FTSE 100 edges off latest record

Chris Beauchamp IG

Global stock markets continued their recovery on Tuesday, with US tech stocks making firm gains ahead of Tesla’s earnings tonight, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 notches up fresh record

“After yesterday’s strong session the FTSE 100 might have been forgiven for running into some early selling. But the index was able to hit a new peak before succumbing to some profit-taking in the afternoon session, though it remains up on the day overall. BoE chief economist Huw Pill will take the blame for the weakness this afternoon, as he warned investors not to hope for rate cuts too soon, but the medium-term outlook for UK stocks continues to look brighter.”

Dow logs more triple-digit gains ahead of Tesla earnings

“US stocks continue to put last week’s low behind them, making further headway, and the Nasdaq 100 led the way in percentage terms ahead of Tesla’s release tonight. The recent weakness in stocks seems to have cleared some of the froth off the market, trimming sentiment just in time for the all-important round of earnings from Big Tech.”

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Chris Beauchamp

EUR/USD weakens to near 1.1900 as traders eye US data

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.