Stocks down but pace of selling eases – China rate cuts spook commodity prices

Chris Beauchamp IG

Stock selloff eases

Most indices are still lower this afternoon, though another 1% rise for the Russell 2000 on Wall Street shows that last week’s rotation is still going on beneath the surface. All eyes are on the Magnificent 7 and USD/JPY, both viewed as the main culprits of the recent selloff. While buying the dip in these two markets has paid off handsomely so far this year, but with a Fed meeting and tech earnings on next week’s calendar, the risk of renewed volatility is very high.&rdquo

China rate cuts spook commodity prices

China’s central bank continues to deliver surprises in the form of rate cuts, but these have not been well-received, a salutary lesson for those hoping for Fed easing in the near future. For now, concerns about China’s economy appear relatively contained, but investors remain on edge.

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Chris Beauchamp

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GBP/USD remains well bid around 1.3650

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