Investors fleeing chip rout find shelter in FTSE 100

Chris Beauchamp IG

Stocks with little direct exposure to AI continue to have the edge at present, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Chip carnage sees FTSE 100 & Dow benefit

Right now, not being so dependent on chip stocks is a good thing. The rotation in markets has seen money desert chip and AI stocks, and flow to areas where these are either less prominent or non-existent. Once more the FTSE 100 finds itself in favour, its combination of dividend payers and names relatively unexposed to AI providing a haven, while in the US the Dow and Russell 2000 continue to show greater resilience than the techy Nasdaq & S&P 500. This is all healthy market action, but is little comfort to latecomers to the tech rally, who were assuming that the euphoria for the sector would continue.

Gold and silver take a drubbing

It’s been a miserable time for precious metals and there is no sign of this ending soon. Both teeter on the edge of a break to fresh lows, a key signal in these momentum-driven markets, helped along by a strengthening US dollar. Meanwhile bitcoin’s relative resilience is a notable step-change, suggesting that gold may finally have lost its edge over the cryptocurrency.

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.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.