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NAS100 - Correction complete?
Or further to go? It's been a shaky start to the new year, with interest rate anxieties dragging on sentiment and hitting the NAS100 particularly hard. The index fell more than 8% over the last week, breaking through key support in the process which could have led to a much deeper correction. Instead, the index bounced strongly in the final hours of trading on Monday and failed to close below the rising channel. While a deeper correction could still be on the cards, the false breakout - as
by Craig Erlam
Yen dips, inflation expectations rise
After several days of gains, the Japanese yen has reversed directions and is in negative territory. In the North American session, USD/JPY is trading at 115.48, up 0.23% on the day. Japanese consumers expect higher inflation The Japanese government is committed to an ultra-easy monetary policy, but it will need stronger consumer spending if it hopes to kickstart the economy.
by Kenneth Fisher
Oil rebounds, gold holds above 1800
Oil eyes Autumn highs Oil prices are rebounding higher again on Tuesday, up more than 1%, and with sights seemingly set on the late autumn highs. We saw some heat come out of the market over the last couple of days but pullbacks were always likely to be limited given the broader dynamics. Of course, omicron offers some demand uncertainty over the coming months but the market is tight as OPEC+ slowly turns the taps back on.
by Craig Erlam
The start of the fightback?
Stock markets are enjoying some reprieve after a rocky start to the week and investors will be hoping earnings season provides more cause for optimism in the weeks ahead. The January blues are alive and well and with markets now eyeing up the possibility of four rate hikes this year, we may be approaching peak fear just in time for earnings season. We've quickly pivoted from the transitory inflation narrative to aggressive tightening including a combination of accelerated tapering, multiple rat
by Craig Erlam
Aussie yawns after retail sales jump
The Australian dollar continues to have a quiet week and is unchanged in Tuesday trade. In the European session, AUD/USD is trading at 0.7170. Australia's retail sales soar Australian consumers opened their purse strings in November, as retail sales jumped 7.3%, well above the consensus of 3.6%.
by Kenneth Fisher
Euro calm, warning from Bundesbank
It continues to be quiet week for the euro, which is trading around 1.1340 in the European session. The currency markets are nervous and continue to be marked by range trading.
by Kenneth Fisher
Oil consolidates, gold rallies
Oil consolidates Oil prices eased slightly overnight in corrective price action consistent with a consolidation of oil’s recent impressive price gains. Brent crude fell by 1.0% to USD 81.00, rising to USD 81.30 a barrel in Asia.
by Jeffrey Halley
Currency markets nervously range-trade
US dollar looking for direction The US dollar rallied sharply overnight as US equities headed south, only to give back most of those gains towards the end of the New York session as the Nasdaq recovered. US bond markets provided no direction with yields almost unchanged.
by Jeffrey Halley
Another mixed day for Asian equities
Asian markets mixed  Wall Street had a schizophrenic session overnight, falling hard for most of the day as markets continued winding themselves up that the Federal Reserve could tighten by as early as March, amid escalating inflation concerns. It is very much a short-term phenomenon though, as US inflation break evens all the way from 1 to 10 years are still pricing in a return to a 2.0% inflation nirvana.
by Jeffrey Halley
Rate hike frenzy continues
It was another choppy session overnight in equity and currency markets, followed today, by another cautious Asian session on equity markets, with forex markets marching on the spot. In other words, business as usual for the past few days. Rate hike fever rises after US job reports Federal Reserve rate hike nerves continue to grow tauter after Friday’s fall in unemployment and rise in employment cost indexes.
by Jeffrey Halley
Commodities and Cryptos: Oil softer as supply returns, Gold steady
Oil Crude prices are lower after Libya’s largest oil field resumed production, Kazakhstan’s TCO oilfields are back to normal levels, and as China's zero-COVID tolerance will lead to new restrictions.  The oil market will likely remain very tight as the world learns to live with COVID.  Travel bans will continue to be lifted as the focus will go to testing and that should do wonders for international travel once test makers have a better handle of the situation. Considering how much oil prices
by Edward Moya
US Close: Stocks slump as inflation fears drive Fed rate hike expectations, Dollar follows Treasury yields
US stocks are sliding as surging pricing pressures have the Fed on a fast-track to get rates back to neutral.  Every trader over the weekend read the Goldman note that eyed four Fed rates hikes and balance sheet runoff in July, if not sooner. Surging yields are kryptonite for many tech stocks and that theme won't change until after we get past the first couple rate hikes. Today is all about risk aversion as fears grow that financial markets completely misread the Fed's scramble to battle inflat
by Edward Moya
Oil prices ease, gold trading sideways
Oil eases near highs Oil prices are easing again on Monday after the rally lost steam around the October highs late last week. Supply issues in Kazakhstan and Libya contributed to the latter stage of the rally, with the bulk since late December coming from more promising omicron data that indicates the economic impact of the new variant will be more subdued than feared. While prices may be pulling back, aided perhaps by the broader shift in risk appetite in the markets, the fundamentals remain
by Craig Erlam
Sell-off gathers momentum
It was a fairly timid start to the week but the sell-off accelerated around the open on Wall Street, pushing Europe well into negative territory at the end of the day. Omicron relief has been replaced by interest rate angst over the past week and that may take some time to pass. We're seeing data from the US at the moment that appears to show supply issues abating, which should allay temporary inflation pressures, but more permanent pressures - like wages rising - which will concern central ban
by Craig Erlam
Aussie steady ahead of retail sales
The Australian dollar is trading quietly at the start of the week. In the North American session, AUD/USD is trading at 0.7172, down 0.14% on the day. US dollar unable to capitalize on soft NFP December job numbers in the US were mixed.
by Kenneth Fisher
Euro edges lower at start of week
The euro is in negative territory at the start of the new trading week. EUR/USD is trading around 1.1320 in the European session. Investment confidence up, unemployment down The week kicked off with positive European events, although the euro was unable to gain any ground.
by Kenneth Fisher
Oil and gold directionless
Oil ignores US jobs data Oil prices were almost unchanged on Friday, with Brent crude and WTI maintaining their gains even as headline US jobs data came in soft. Brent crude edged 0.20% lower to USD 81.80, and WTI fell 1.0% to USD 78.85 a barrel.
by Jeffrey Halley
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