US data deals a blow to the rally

Chris Beauchamp IG

Stocks take a tumble following GDP shock

“Markets had been rubbing along relatively happily until today’s US data, which seemed to give form to investors’ worst nightmares. Negative GDP, a first in 3 years, weaker jobs growth and higher wages are the potent combination of stagflation. Inevitably, the market has ignored the fact that the imports side of things drove the decline in growth, and given the huge rebound in stocks some volatility at month-end was not surprising. It’s up to tech earnings now to provide some much-needed cheer to finish up April.”

Can stocks sustain their bounce beyond April?

“A month like April, where stocks take a nasty tumble but then claw their way back again, is a rare occurrence. But when it does happen, it has often formed the low in the selloff. 2008 is the exception, but then again when isn’t 2008 the exception. Yesterday’s consumer confidence showed how panicked Americans are, which at least provides hope that data in May and June might assuage some of their worst fears.”

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 offered near 1.3370

GBP/USD remains on the back foot, slipping back toward the 1.3370 zone on Tuesday. Cable has come under pressure soon after testing the 1.3400 neighbourhood as investors turned more cautious in response to renewed effervescence on the geopolitical front.

EUR/USD stays offered below 1.1450

EUR/USD remains on the back foot ahead of the opening bell in Asia, returning to the low-1.1400s on the back of the resurgence of the demand for the US Dollar. Indeed, renewed jitters in the Middle East support the safe haven universe and weigh on the sentiment surrounding the risk complex. Moving forward, investors’ attention should shift to Wednesday’s FOMC Minutes.

Gold weakens toward $4,100

Gold adds to Monday’s decent pullback and trades close to the $4,100 mark per troy ounce on Tuesday. In the meantime, fresh geopolitical effervescence appear to have reignited inflation concerns, which in turn, limit any recovery attempt from the precious metal.

Ondo launches Perps with 20x leverage on tokenized stocks

Ondo Finance has expanded its financial services suite to include perpetual futures contracts for tokenized stocks. The platform, referred to as Ondo Perps, will provide 24/7 trading and over 20x leverage, utilizing tokenized stocks as collateral.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance, arguing that the current world demands more flexibility.