Tech rallies but FTSE 100 comes under pressure

Chris Beauchamp IG

A better day for tech stocks contrasts with losses for the FTSE 100, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Tech leads gains after Nvidia results

Nvidia’s solid earnings last night have reignited the AI trade, pushing the Nasdaq 100 back towards yesterday’s highs. Tech stocks are back in favour, while everything else has been unceremoniously dumped as risk appetite wanes before Kevin Warsh’s Jackson Hole speech and the end of the month. It has been a grim day for the FTSE 100, which has seen the optimism of the first half of the week give way to broad selling, though the wooden spoon goes to the CAC40, where fears of the impact of higher oil prices have hit infrastructure group Eiffage.

Pound edges lower for a second day

Some of yesterday’s heavy selling in sterling versus the dollar have abated, but the currency still looks to be overtired after its strong rally. The usual pre-Jackson Hole anticipation mean now is hardly an ideal time to push GBPUSD higher given speculation around a more hawkish Warsh and a potential September rate hike.

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 stays slightly offered below 1.3600

Following an initial drop to fresh six-day lows, GBP/USD now picks up some updside traction and trades in levels just shy of the 1.3600 barrier on Thursday. The generalised cautious tone among market participants continue to underpin the Greenback ahead of Friday’s data releases and the Fed Warsh’s speech.

EUR/USD challenges 1.1650; US Dollar remains inconclusive

EUR/USD now manages to regain some composure, trimming earlier losses and reclaiming the mid-1.1600s on Thursday. The pair’s pullback comes on the back of marginal gains in the US Dollar, as market participants now shift their attention to Friday’s NFP revision and the speech by Chair Warsh at the Jackson Hole Symposium.

Gold struggles to reclaim $4,600

Gold adds to Wednesday’s pullback, although it manages to pick up some pace and come closer to the $4,600 mark per troy ounce on Thursday. In the meantime, the yellow metal remains on the back foot despite the widespread caution and the lack of clear direction of the US Dollar.

Crypto Today: Bitcoin, Ethereum, XRP bulls regain strength amid steady capital inflows

Cryptocurrency prices are broadly edging higher on Thursday, led by Bitcoin’s uptick near $80,000. Altcoins mirror Bitcoin’s short-term bullish outlook, with Ethereum trading above $2,500 and Ripple hovering above its key $1.40 support.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.