Stocks recover following Trump speech

Chris Beauchamp IG

The relief in markets is palpable today as Donald Trump appears to rule out using force to take Greenland, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stocks recover as Trump walks back military threat

Traders have had to spend their afternoon listening to Donald Trump ramble on about his usual variety of topics, but the key nugget was his comment on ruling out military action to seize Greenland. This has delivered the magic moment everyone was waiting for, and stocks duly rallied while the VIX slumped as fears of a total rupture of the Western alliance receded. While the EU parliament has suspended work on the US trade deal, the diminishing chance of a US-EU trade war has allowed a more positive atmosphere to prevail.

Netflix rallies off one-year low

The rebound in risk appetite has helped Netflix claw back losses after its results last night. Even the most die-hard fundamental investor can’t help but note the price testing the $80 from last April. With much of the bad news in the price and the shares trading at a much less demanding valuation compared to six months ago, will the bargain hunters finally emerge?

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Chris Beauchamp

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD falls below 1.3550, pressured by weak UK jobs report

GBP/USD remains under heavy bearish pressure and falls toward 1.3500 on Tuesday. The UK employment data highlighted worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.