Record highs on the FTSE 100 and on Wall Street

Chris Beauchamp IG

If there are jitters about tech earnings this week then they're not showing up in the price action, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 advances to new record

The FTSE 100’s directionless start to the day has given way to more record highs, joining the enthusiastic gains seen in Japan and the US in the past 24 hours. Bubble fears would be hard to engender here – even after its rampage to new highs the index still trades at 14 times earnings. Gold’s small bounce this afternoon should help prop up the mining sector, helping to put some shine back after the recent losses.

Bubble fears rise again as Microsoft and Apple join the $4 trillion club

This continues to be one of the most disliked rallies in history. Each new high in indices and every milestone achieved by individual stocks is presented as evidence of a bubble in equities. Even Cathie Wood appears to be getting jitters. This doesn’t feel like we are seeing Greenspan’s ‘irrational exuberance’, instead the disbelief appears to be widespread. It is understandable to see signs of nervousness around tech earnings this week, but the market continues to demonstrate remarkable resilience.

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Chris Beauchamp

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.