Goldman earnings prompt investors to worry

Chris Beauchamp IG

Heading into the close the FTSE 100 is 7 points lower, while the Uber grey market has begun to feel the pressure from Lyft’s decline.

Equities move lower following Goldman earnings
Mnuchin comments keep investors on edge
Uber grey market suffers a fall

Weaker Goldman Sachs figures and a warning from the US Treasury Secretary about the likelihood of a new deal between the US and China have helped equities to move lower, frustrating the hopes of those that thought today might see the start of a triumphal procession back to record highs for the S&P 500. Caution prevails, still leaning towards overall optimism, and given how well JPMorgan has done investors seem content to view the vampire squid’s figures as a problem of its own making, and not something symptomatic of broader problems in the US banking industry. The back-and-forth of China negotiations leaves markets vulnerable to comments about progress or the lack thereof, but who wouldn’t
be surprised if sufficient progress is made this week so that the President can issue a triumphant tweet, get US indices back to record highs and send America off to the Easter holidays with a spring in its step?

IG’s Uber grey market has seen some sellers arrive, pushing the price down by more than 4.5% on the day so far, suggesting a market cap of around $102 billion for the taxi service. With Lyft’s post-IPO retreat turning into a rout it is not surprising to see clients become more sceptical about the potential IPO-day performance of Uber.

Author

Chris Beauchamp

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.