FTSE 100 hobbled by Gold and Silver fall

Chris Beauchamp IG

More losses for gold and silver have acted as a drag on the FTSE 100, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Miners weigh on FTSE 100

It’s another mixed day for the FTSE thanks to the mining sector. Gold and silver keep on weakening, casting a long shadow over Endeavour Mining and Fresnillo, and leaving the index without the momentum to push on towards 11,000. It hasn’t been a very exciting start to the week on the continent either, with the equity rally looking distinctly tired and unable to muster up much enthusiasm even as the US and Iran look to resume talks.

Dow regains 52K but tech struggles

The shortened week in the US gets underway with more wobbles for technology stocks. Despite Amazon’s solid 5% start the rest of the sector failed to hold initial gains, but at least the Dow has recouped the 52,000 level in early trading. The bias lies to the upside over the next few sessions, helped by the fact that president Trump seems keen to avoid any further hostilities with Iran ahead of the 4th July holiday.

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 surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD picks up extra pace north of 1.1400

EUR/USD extends its recovery past 1.1400 the figure as the NA session draws to a close on Monday. Indeed, the pair advances for the third straight day amid the persistent offered bias in the US Dollar. Meanwhile, market participants keep gearing up for the ECB Forum in Sintra and the release of critical US labour market data.

Gold struggles to attract investors

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Strategy unveils plan allowing Bitcoin sales to fund stock buybacks, dividends and reserves

Strategy (MSTR) has unveiled a Digital Credit Framework to strengthen the company’s financial standing. Under the new framework, the world’s largest corporate holder of Bitcoin (BTC) will pivot from its previous accumulation strategy, opting to sell BTC in order to boost liquidity, fund dividend payments, execute stock buybacks, and strengthen cash reserves.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.