Rising UK bond yields have pressured FTSE mid-cap stocks today, while in the US signs of strength in the labour market mean rate cut bets continue to be pushed further back into the second half of 2025, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 250 slumps to a five-month low
The mood music around the UK continues to deteriorate as 30-year gilt yields rise to their highest level over a quarter of a century. Investors have come back from the festive break in a sour mood concerning the UK, and have now decided that the UK’s cheap status is not an attraction, but instead a reflection of the poor situation facing the British economy. The cautious attitude is evident across markets, but it seems to be the UK that is bearing the brunt.
Wall Street struggles as rate cut bets are pushed back
Yesterday’s signs of rising inflation in the US have combined with an eleven month low in jobless claims to push back expectations of any rate cuts in 2025. While the claims figure shows that the US economy’s much-vaunted economic strength is still in place, rising prices mean the Fed’s job is going to get much tougher. This is, of course, before any new tariffs are imposed. Having effectively achieved his soft landing in 2024, Powell is going to find keeping the economy in that sweet spot will be much harder.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
EUR/USD loses momentum to near 1.0300 ahead of Eurozone Retail Sales release
The EUR/USD pair trades in negative territory for the third consecutive day around 1.0310 during the early European session on Thursday. The downbeat German November Factory Orders and the expectation of aggressive rate cuts by the European Central Bank this year weigh on the Euro against the Greenback.
GBP/USD trades near 1.2350 after rebounding from nine-month lows
The GBP/USD pair remains under pressure for the third consecutive session, hovering near 1.2360 during Thursday's Asian trading hours. Technical analysis of the daily chart highlights a prevailing bearish bias, with the pair falling back to the descending channel pattern.
Gold price sticks to modest intraday losses amid bullish USD; downside seems limited
Gold price snaps a two-day winning to a multi-week top amid the Fed’s hawkish stance. Retreating US bond yields undermine the USD and lend some support to the XAU/USD pair. Traders look to Fed speakers for some impetus ahead of the US NFP report on Friday.
BNB poised for a decline on negative Funding Rate
BNB price hovers around $696.40 on Thursday after declining 4.58% in the previous two days. BNB’s momentum indicators hint for a further decline as its Relative Strength Index and Moving Average Convergence Divergence show bearish signals.
Bitcoin edges below $96,000, wiping over leveraged traders
Bitcoin's price continues to edge lower, trading below the $96,000 level on Wednesday after declining more than 5% the previous day. The recent price decline has triggered a wave of liquidations across the crypto market, resulting in $694.11 million in total liquidations in the last 24 hours.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.