Stocks claw back lost ground despite ADP miss

Chris Beauchamp IG

US stocks have rebounded despite a weak private payrolls report, while utility stocks around the globe remain in demand thanks to the likelihood of imminent rate cuts, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

September slump paused for a second day

What seemed to be the beginning of a fresh slump for global markets has been put on pause, at least for now. US markets have moved higher again this afternoon, having held the lows of the past 48 hours, while the Vix has slumped in afternoon trading. The bulls aren’t giving up just yet it seems. While the ADP report was worse than expected, investors seem to have learnt their lesson this time, avoiding putting too much store in today’s numbers ahead of tomorrow’s payrolls.

FTSE 100 boosted by utilities

The prospect of more rate cuts continues to put new life into the utility sector. Today’s UK leaderboard is populated by a number of the high dividend-paying names, as investors look to bolster their income streams. It’s a helpful recession defence too, given the strong visibility of revenues in the sector.

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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.