Risk rally takes hold ahead of tech earnings

Chris Beauchamp IG

Risk appetite has recovered as investors await tech earnings tonight, and some easing in bond yields is also helping investors to take a more positive outlook, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks stage a rebound

“Equities are in bullish mode this afternoon ahead of the start of the big tech earnings bonanza this week. The mood was strengthened by figures from Verizon, which reported solid Q3 figures and raised its cash flow guidance, sending the shares up by the most in three years. We are now firmly into the strong Q4 seasonal period for stocks, providing bulls with their best hope for a sustained rally in months. An easing of yields will aid this outlook too, and notably it is yield stocks that are leading the way higher in London this afternoon.”

Tech stocks to determine market direction

“With the Fed not expected to move for the rest of the year, it feels like this earnings season could be key in determining whether markets do see a decent year-end rally for risk. A repeat of last year’s exuberance is unlikely, given the rise in valuations, but if history is any guide, and if earnings season is of the right kind, then more upside appears likely here. “

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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

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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.