FTSE 100 stumbles but Dax and S&P 500 keep rising

Chris Beauchamp IG

Investors await news of the French government this afternoon, while watching the year’s strong performers make yet new highs, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 edges back after strong run

The FTSE 100 has enjoyed a decent couple of weeks, but it looks like it has run out of momentum for the moment. A dearth of corporate news isn’t helping matters either. Meanwhile, investors can be forgiven for focusing on France, where the prime minister faces the likely collapse of his government.

While the CAC40 has managed to struggle higher of late, the contrast with a soaring Dax could not be more stark. The latter index has gained over 20% this year, but it is perhaps more a story of French weakness than overall German strength. Certainly, the German economy continues to struggle, but it is political turmoil and the travails of the luxury sector that has hobbled its Gallic counterpart’s stock market.

Semiconductor names show signs of life

Having notably underperformed the broader US indices of late, it might be the turn of semiconductor stocks to lead the drive to fresh highs once more. It’s not as if US indices have needed much help given the latest record highs, but with the Fed continuing to ease policy, the environment for the classic risk-on sector seems to be getting brighter.

Author

Chris Beauchamp

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.