Europe surges but US trading remains muted

Chris Beauchamp IG

It has been a great day for European stocks but on Wall Street the mood is more muted thanks to weaker economic data, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 shrugs off any pre-election nerves

“UK stocks are in a positive mood on the final day of election campaigning, with most investors looking forward to the installation of a Labour government with a large majority, providing stability and removing political risk from the outlook for the time being. When the election is out of the way, the next focus will be a possible UK rate cut, helping to give the economy a much-needed shot in the arm. Prominent among today’s gainers have been miners, boosted by a weaker dollar and rallying commodity prices.”

European equities make solid gains on hopes of French election stalemate

“While US markets have begun the session quietly thanks to the poor ADP payrolls and ISM number, stocks in Europe continue to roar higher. As expected, a swathe of candidates in the French elections have stood down, allowing for a united front against the Far Right. While this means France is set for a period of political deadlock, it does mean that neither left nor right will have the upper hand. In the short-to-medium term, this should help European equities to keep moving higher, though the longer-term view is less encouraging.”

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Chris Beauchamp

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.