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.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.