Stock markets stage an impressive recovery

Chris Beauchamp IG

A wave of buying has swept over global markets, particularly in the heavily-sold chip names, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

FTSE 100 reaches fresh record high

Driven by banks and miners today, the FTSE 100 has managed to rally to a fresh record high, though its better performance versus tech over recent weeks means that the gains in London pale in comparison with the frenetic buying in New York. The Fed’s decision to swerve a rate hike last night and Warsh’s decidedly lukewarm commitment on hawkish policy has walloped the dollar and given commodities space to rally hard.

Semiconductor surge bolsters Nasdaq

The buyers have come storming back in today, buoyed by the signs of Microsoft actually making money off its huge capex, and given some additional impetus by the GDP figures that give the Fed chairman a boost in his quest to avoid raising rates. Microsoft is racing away in its best day since the financial crisis, while Sandisk shares are on fire after the drubbing suffered earlier in the week. Big rallies are a feature of pullbacks, since hope springs eternal – investors just have to hope tonight’s results provide a further excuse to jump back in.

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 rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.