Spreadex Market Update

Silver loses some of its shine, but Dow Jones and FTSE maintain rebounding start to February



Though it is unclear who exactly is behind the sharp rise in silver, the precious metal’s growth has kept the Reddit/retail trader conversation at the forefront of investors’ minds.

After an appalling end to January, one which saw it close at 29,982 – more than 1,200 points below the all-time highs struck in the 3rd week of the month – the Dow Jones crawled into February with a 120 point increase.

That was just about enough to push it the right side of 30,120, though it reached that level without much conviction.

On top of the ostensibly Reddit-led volatility – which will keep away as many investors as it will attract – the US markets have a congested week on their hands. Not only does the fight to pass Joe Biden’s $1.9 trillion covid-19 stimulus package begin in earnest, there are also earnings from Amazon and Alphabet on Tuesday, and the first nonfarm jobs report covering 2021 on Friday.

Though silver lost a step as the session went on – pulling back below $29 an ounce and a 6.8% increase, compared to a 12% surge and 8-year highs of $30 earlier in the day – the FTSE 100 and its miners continued to shine. Anglo American was the pick of the crop, its 3.7% rise helping lift the UK index 0.9%, pushing it beyond 6,465.

The DAX and CAC also enjoyed a rebound this Monday, climbing 1.2% and 0.9% respectively. That still, however, leaves both a long way off their January highs.

It’s tough to predict what is going to happen in the coming days, i.e. whether, and where, the retail trader shake-up will migrate to next. Especially since it doesn’t look like the silver trade is being driven solely, or even predominantly, by Reddit, and could instead by a counter-play by hedge fund managers.

SEARCH FOR AN ARTICLE:

Enter a keyword and search for all relevant articles

MARKET ANALYSIS

RECENT POSTS

Financial Trading Blog

FTSE 100 Under Pressure From Oil Ahead of CPI, Sainsbury's Earnings

Read More

Economic Diary

21.04.26

Read More

Weekly Technical Analysis

Weekly Technical Analysis

Read More

Financial Trading Blog

Nasdaq At Record Highs Ahead of Tesla, Intel Earnings

Read More

Daily Market Update

20.04.26 Monday Morning

The S&P 500 edged lower in thin trading after record highs as investors weighed renewed US-Iran tensions and...

Read More

Economic Diary

20.04.26

Read More

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.