FTSE surges, tech suffers and Netflix rises as Paramount shunned by Warner Bros

Chris Beauchamp IG

The bounce in tech names is fizzling out while the FTSE 100 surges, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 at one-month high but Wall Street struggles

The optimism shown in the FTSE is not being replicated on Wall Street, where a positive session for futures has given way to more selling in the cash session. Once again it is tech leading the way to the downside, with notable losses for Nvidia and Alphabet. Concerns about AI have reared their head again, weighing on sentiment just as the Santa rally was meant to get underway. It has been a better day for commodities however, as investors move away from tech and seek exposure to other sectors better placed to benefit from the next wave of US economic growth.

Paramount defeated in Warner Bros bid

Netflix has been rallying following news that Warner Bros will look to join itself with the streaming giant. While a hefty price tag, the news promises to expand Netflix’s vital content library, an essential tool in the battle to keep existing and attract new subscribers. Having recently fallen to an eight-month low, the shares look much cheaper compared to their summer highs, providing a nice contrast to the AI trade where overvaluation fears remain high.

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Chris Beauchamp

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.