New record highs for S&P 500, Nasdaq 100 with DAX 40 in close pursuit

Chris Beauchamp IG

'Much better-than-expected Netflix subscriber numbers and US private sector activity growth pushed the S&P 500 and Nasdaq 100 to new record highs', says Axel Rudolph, Senior Market Analyst at online trading platform IG.

S&P 500, Nasdaq 100 and DAX 40 surge ahead

"Following the Shanghai Composite's 1.8% rally on the back of rapidly rising Alibaba shares - as its co-founders bought around $200 million of the company's shares - the DAX 40 rallied by a similar amount as its largest constituent SAP's share price advanced by over 7% amid AI induced restructuring."

Eurozone, UK and US flash PMIs closely watched

"Disappointing eurozone January flash PMI data didn't prevent European stock indices from rallying, especially since US private sector activity growth hit a seven-month high and positive Netflix earnings propelled the S&P 500 and Nasdaq 100 to new record highs. In the UK the strongest rate of output growth since last June was counterbalanced by weaker-than-expected factory orders. Despite this China dependent luxury goods and mining stocks helped the FTSE 100 to also perform amid talk of a new China stimulus package and as iron ore prices are rising. The price of crude oil continued its advance but the gold price fell despite the US dollar slipping."

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Chris Beauchamp

EUR/USD flat lines near 1.1800 as traders brace for US PPI release

The EUR/USD pair trades on a flat note near 1.1800 during the early Asian session on Friday. The pair steadies as softer Eurozone inflation offsets US tariff uncertainties. Traders await the preliminary reading of the Consumer Price Index from Germany on Friday for more clues about the pace of future policy easing. On the US front, the Producer Price Index report will be released.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold remains below $5,200 despite tariff jitters and geopolitical risks

Gold is seen consolidating in a range below the $5,200 mark during the Asian session on Friday amid mixed cues. Trade jitters, along with the risk of a potential US-Iran war, act as a tailwind for the safe-haven bullion. Meanwhile, the Fed's hawkish outlook keeps the US Dollar close to the monthly high and caps the non-yielding yellow metal. Nevertheless, the commodity remains on track to register gains for the fourth straight week, though the fundamental backdrop warrants some caution for bullish traders.