Cooling inflation gives stocks a helping hand

Chris Beauchamp IG

Slowing annual UK inflation and a fall in US core CPI have given stocks the space to rally this afternoon, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks surge as good news arrives in spades

After a shaky start to the year stocks seem to have found their footing, helped in a big way by today’s US inflation and earnings data. Yesterday’s PPI data in the US raised the prospect that today’s figures wouldn’t come in too hot, and while the headline figures were slightly higher, the key core figures delivered the good news. Investors can live with a cautious Fed so long as inflation remains contained. Today’s news seems to support that thesis, and has seen risk appetite switch firmly back to bullish.

UK mid-caps continue to recoup losses

Today’s UK inflation data was also good news for hard-pressed FTSE stocks, and there was plenty of interest in the FTSE 250 and its UK-focused names. After the unrelenting parade of bad news on the UK economy, today’s figures are a welcome change. The problems remain however, but for now the bond vigilantes, and their equity market cousins, have gone quiet.

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Chris Beauchamp

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

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Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.