Powell speech pushes tech stocks lower

Chris Beauchamp IG

Tech stocks have led the losses this afternoon as investors reassess the outlook for Fed policy following Powell's speech, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks retreat after Powell comments

A week of indecision for stock markets is ending on a weaker note following Jerome Powell’s unexpected dialling back of dovish rhetoric. Tesla continues to rise as it’s founder’s ascension to the corridors of power becomes ever more impressive, but other tech stocks have taken Powell’s speech in a gloomier fashion. Nvidia, at risk of weakness due to its earnings next week, has dropped over 2% and looks primed for more profit-taking into next week.

FTSE 100 stalls

A three-day bounce for the FTSE 100 is running out of steam, thanks in large part to index heavyweight GSK, which has fallen as investors fret about a much tougher period ahead for pharma stocks now that Trump’s pick for health secretary has been announced. Gains in continental Europe have stalled too, as the poor session in the US stymies bullish sentiment.

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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.