What you need to know on Friday, January 29:
The financial world turned around equities again, but stocks were not driven by confidence. For a change, the escalation of the Gamestop scandal paved the way. To put it in a nutshell, individual investors rallied the stock considerably and raised alarms everywhere. Trading was halted on some platforms, to the detriment of individual investors who were causing losses within hedge funds.
Those investors gathered in forums, set their eyes on silver, which sent the metal up more than 5% for the day, which in turn pushed oil and gold higher and dragged Wall Street down. This is a story in the making and will likely continue to affect financial markets for days to come.
The dollar strengthened as the Asian and European indices fell, but then surrendered as Wall Street returned. GBP / USD was the best performer, trading near its recent highs. Commodity-linked currencies rallied before the close, but are at risk of resuming their declines.
EUR / USD is stuck at 1.2150, unable to attract investors. USD / JPY has passed its monthly high by a few pips, but lacked follow-up.
US Treasury yields rose, following mostly encouraging US data. GDP for the fourth quarter stood at 4%, while initial jobless claims fell to 875,000.
Gold was unable to hold onto intraday gains and ended the day unchanged around $ 1,843 a troy ounce. Crude oil prices also trimmed initial gains, with the WTI set at $ 52.30 a barrel.
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