Wednesday Aug 21 2024 13:54
3 min
The FTSE 100 index opened flat on Wednesday morning after stumbling a bit yesterday on weakness for BT shares, which declined 6% as its big client Sky signed a deal to offer broadband services via CityFibre.
The blue chips declined 1% on the back of this move but has stabilised this morning with basic resources offering some support as copper prices bounced off the 200-day SMA support. European bourses trade a little higher after Hong Kong’s tech sector led a drop in Asia. The run on Wall Street came to an end yesterday.
The S&P 500 and Nasdaq both snapped 8-day win streaks – a ninth would have been the best run since 2004. Despite the major wobble at the start of August, both indices are now up around 1% for the month. Meanwhile crude oil fell again with front month WTI testing $73 whilst gold rallied to fresh record highs yesterday above $2,500 before paring gains a touch overnight.
Sterling and the euro pared gains against dollar early on Wednesday after a third straight day of strong gains on Tuesday. EURUSD rallied to 1.11 to test the Dec ‘23 swing high. A solid breach of this level could see a retest of the July ‘23 high at 1.13 — US dollar weakness into the November election on deficit concerns maybe?
Also, the market seems to think inflation is coming down and is turning risk-on with equities again, which is exerting pressure on USD — or maybe it’s actually the drop in inflation, yields and USD that is driving the risk-on flows? FOMC minutes are due later but otherwise a quiet day as far as economic data is concerned.
The US dollar index (DXY) is down 1% over the past 5 days. The DXY has shed 2.73% on a one-month basis as of August 21, although it is still up 0.21% year-to-date.
GBPUSD hit 1.30 for its best in more than a year as well.
When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
Tags Directory
View allLatest
View all
Wednesday, 8 January 2025
5 min
Wednesday, 8 January 2025
4 min
Wednesday, 8 January 2025
7 min
EN
