Equity surge fades rapidly

Chris Beauchamp IG

New-month optimism has faded quickly on global equity markets, as a slew of concerns hobbled the morning’s positive start, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Early gains fizzle out across markets

“May ended with a bang as equities in the US surged into the close on Friday. The morning session for Europe and US futures suggested we might see more gains, but aside from small gains for the Nasdaq 100 Wall Street has failed to make progress, while European markets have given back some of their gains. A contraction in US manufacturing activity and signs of strength in European gas prices have given investors reason to put their bullishness on hold.”

Oil prices slump despite OPEC news

“At least consumers will be seeing lower petrol prices at the pumps soon. Oil prices have slumped to their lowest level since early February. Friday’s optimism around an OPEC+ meeting has evaporated. The news has put some pressure on BP and Shell in London, though their losses are dwarfed by the slump in GSK’s share price as it faces fresh legal battles.”

Author

Chris Beauchamp

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.