Editor’s Note: If you’re a regular Market 360 reader, you probably know I usually share my latest MarketBuzz YouTube video from the previous weekend on Mondays. But in light of today’s turbulent market activity, we’re doing something different today. Instead, I’m going to share the transcript of a Special Market Podcast that I sent to my premium readers earlier this afternoon.
Now, usually, my podcasts are reserved for my paid-up subscribers only. But given today’s selloff, I’m making an exception…
Large-scale holders of more than $1 million in Dogecoin (DOGE) are proactively minimizing more losses as its price keeps struggling. These astute investors are looking to Rexas Finance (RXS), a fast-rising cryptocurrency with creative technology and explosive development potential, more and more to hedge against possible downturns. These high-net-worth individuals are setting themselves up to offset DOGE losses by diversifying their portfolios with Rexas Finance and seizing the exciting opportunities of Rexas Finance.
Dogecoin’s Value Struggles and Market Trends
Although Dogecoin’s price changes in the wider crypto market, it remains below the $0.5 mark. Recent losses have drawn attention to a lack of a positive trend, as whale activity provides little support. Unlike in past bull runs, the DOGE price has fallen short of recovering important resistance levels.
At $0.25 right now, the DOGE price has declined 0.43%. Over 24 hours, this has dropped Technical indicators show declining trends; on-chain data shows less activity. The sentiment remains conflicted since some investors bet on Elon Musk’s impact. DOGE’s success still suffers from the lack of main catalysts.
Rexas Finance (RXS): The Token Dogecoin Whales Are Headed To
Rexas Finance’s inventive ecology is its fundamental strength. Rexas Finance develops a flawless blockchain purchase, sale, and trading path by tokenizing actual assets for investors. Among the several advantages this model offers are more openness, reduced transaction costs, and easier access to worldwide markets. Rexas Finance distinguishes itself from other projects by emphasizing the bridge between blockchain technologies and traditional real-world assets. Rexas enables anyone to buy, sell, and exchange real estate worth $379.7 trillion, gold valued at $121.2 trillion, and art with annual sales of $65 billion, empowering everyone to do so with ease and security. The initiative lets people own fractional shares of valuable assets, generating investment opportunities once only accessible to the wealthy. Early investors have seen a whopping 6.67x return on investment (ROI) while the cryptocurrency’s value has skyrocketed. The project’s community-driven approach and artistic aspects have attracted institutional and personal investors, creating demand and bolstering Rexas Finance’s future price projections. The basic Rexas Token Builder allows anyone without technical knowledge to tokenize assets on the platform. Rexas Launchpad users can also enable people to donate money for their tokens. Supporting many criteria, such as ERC-20, ERC-721, and ERC-1155, Rexas Finance guarantees flexibility and overall fit.
Rexas Finance is well-positioned to benefit from the $486 trillion global financial asset market, which encompasses real estate, commodities, and financial assets. Its ETH-based token properties provide even more appeal and help to position Rexas Finance for a possible 12000% surge following launch.Unlike ordinary investors, institutional players seeking exposure to blockchain-based real-world asset investments also find Rexas Finance interesting. Tokenizing physical assets presents a special opportunity to provide liquidity to usually non-liquid marketplaces. This method is changing investing methods by letting smaller investors access high-value assets and giving institutional investors a varied approach to capital allocation. Adding to the excitement, the Rexas Finance team has officially announced that the highly anticipated Rexas Finance token will launch on exchanges on June 19th, 2025. With this confirmed launch date, investors and enthusiasts are eagerly counting down the days until Rexas Finance makes its public debut with a listing price of $0.25 Joining the Rexas Finance presale offers an excellent opportunity to lock in tokens before prices rise. Visit the official Rexas Finance website to guarantee a safe purchase and avoid fraud. Link your wallet to the platform, then purchase Rexas Finance tokens with compatible cryptocurrencies like Ethereum or USDT. Once your purchase is finished, securely save your tokens in your wallet and monitor the presale phases to stay aware of price changes and advancements.
Conclusion
Given Dogecoin’s continuous price challenges and lack of main catalysts, investors with large holdings are looking at strategic alternatives. Rexas Finance is a good hedge since it exposes investors to actual asset tokenization and offers great development possibilities. As Rexas Finance continues to gain popularity, early investors may find amazing gains, making it an interesting option in today’s changing crypto scene.
For more information about Rexas Finance (RXS) visit the links below:
Disclaimer: The views and opinions presented in this article do not necessarily reflect the views of CoinCheckup. The content of this article should not be considered as investment advice. Always do your own research before deciding to buy, sell or transfer any crypto assets. Past returns do not always guarantee future profits.
Updated on March 10th, 2025 by Bob Ciura Spreadsheet data updated daily
The Russell 2000 Index is arguably the world’s best-known benchmark for small-cap U.S. stocks.
Small-cap stocks have historically outperformed their larger counterparts. Accordingly, the Russell 2000 Index can be an intriguing place to look for new investment opportunities.
You can download your free Excel list of Russell 2000 stocks, along with relevant financial metrics like dividend yields and P/E ratios, by clicking on the link below:
Table Of Contents
Russell Index Overview & Construction
The Russell 2000 Index is a subset of the Russell 3000 Index.
FTSE Russell maintains the Russell 3000 Index, which is comprised of the 4000 largest publicly traded U.S. companies. Note the confusing naming structure; the Russell 3000 actually has 4000 securities in it.
The index is reconstructed annually and updated quarterly with new IPOs (Initial Public Offerings).
The Russell 3000 Index is broken down into the following subgroups (which despite its name includes 4000 securities):
Russell 1000: The 1000 largest Russell 3000 Index companies
Russell 2000: Companies ranked 1,001 – 3,000 in size
Russell Microcap Index: Companies ranked 2,001 – 4000 in size (overlaps with the Russell 2000)
How To Use The Russell 2000 Stocks List To Find Investment Ideas
Having an Excel document that contains financial information on each Russell 2000 stock can be tremendously useful.
This document becomes far more powerful when combined with a knowledge of how to manipulate data within Microsoft Excel.
With that in mind, this article will provide a tutorial on how to implement two actionable investing screens from the Russell 2000 Stocks List.
The first screen that we’ll implement is for stocks trading at price-to-earnings ratios below 15. These are small-cap stocks trading at attractive valuations and should avoid the valuation risk that accompanies investing in overpriced securities.
Screen 1: Small-Cap Value Stocks With Price-To-Earnings Ratios Below 15
Step 1: Download the Russell 2000 Stocks List near the beginning of this article.
Step 2: Highlight all columns.
Step 3: Go to the “Data” tab, then click “Filter.” See the image below for a walk through of steps 2 and 3.
Step 4: Go to the P/E ratio column, click the filter arrow, go to numbers filter, click between, and set to between 0 and 15. See the image below for a guide to this step.
The remaining stocks in this spreadsheet are Russell 2000 stocks with price-to-earnings ratios below 15 and positive earnings.
In the next screen we’ll show you how to implement an investing screen for Russell 2000 stocks that have high-dividend yields and reasonable payout ratios.
Screen 2: High-Yield, Reasonable Payout Ratio Small-Cap Stocks
Step 2: Go to the Dividend Yield column, click the filter arrow, go to numbers filter, click “greater than or equal to,” and add in 0.05.
Step 3: Go to the Payout Ratio column, click the filter arrow, go to numbers filter, and select “between,” and set to between 0 and 0.60. See the image below for a walk through of steps 2 and 3.
The remaining stocks in this spreadsheet have dividend yields of 5% or more and payout ratios below 60%.
You now have a solid understanding of how to use the Russell 2000 stocks list to find investment ideas.
The remainder of this article will briefly describe the merits of investing in the Russell 2000 Index before explaining other resources that you can use to find investment ideas.
Why Invest In Stocks From The Russell 2000 Index
As mentioned previously, the Russell 2000 Index contains the domestic U.S. stocks that rank 1,001 through 3,000 by descending market capitalization.
The Russell 2000 is an excellent benchmark for small-cap stocks. The average market capitalization within the Russell 2000 is currently ~$3 billion.
Why does this matter? There are a number of advantages to investing in small-cap stocks, which we explore in the following video:
Small-cap stocks have historically outperformed large-cap stocks for two reasons.
Firstly, small-cap stocks tend to grow more quickly than their larger counterparts. There is simply less competition and more room to grow when your market capitalization is, say, $1 billion when compared to mega-cap stocks with market caps above $200 billion.
Secondly, many small-cap securities are outside the investment universes of some larger institutional investment managers. This creates less demand for shares, which reduces their prices and creates better buying opportunities.
For this reason, there are typically more mispriced investment opportunities in a small-cap index like the Russell 2000 than a large-cap stock index like the S&P 500.
Investors with a value orientation should keep this in mind when searching for their next purchase opportunity.
Russell 2000 Monthly Performance
The Russell 2000 ETF (IWM) generated negative total returns of -8.3% in February 2025. IWM under-performed the S&P 500 ETF (SPY), which generated negative total returns of -1.3% last month.
While the evidence points towards small-cap stocks outperforming over the long run, that has not been the case over the last decade when comparing IWM to SPY.
Over past 10 years, the S&P 500 ETF generated annualized total returns of 12.70% per year, versus 6.87% annual total returns for the Russell 2000 ETF.
This is a counter-intuitive finding, as many investors would expect small-cap stocks to outperform large-caps in a bull market.
We believe the extremely strong performance of large technology companies over the last decade is at least partially responsible for the superior performance of the large-cap S&P 500 relative to small caps over that time frame.
Final Thoughts & Further Reading
The Russell 2000 Index List is an excellent place to look for small-cap investment opportunities. However, it is not the only place where excellent investments can be found.
If you’re looking for exposure to stable large-cap stocks with solid dividend growth prospects, the following databases will prove more useful than the Russell 2000 Index List:
Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.
Editor’s note: “Beyond the Ups and Downs: Building Wealth in a Volatile Stock Market” was previously published in February 2025 with the title, “How to Find Success in Today’s Volatile Stock Market.” It has since been updated to include the most relevant information available.
Another day, another crazy roller-coaster ride for the stock market…
This has been the trend since Halloween.
That is, in November, the S&P 500 rose 5.73%, achieving one of its best months in a year on optimism about potential deregulation and tax cuts under the Trump administration.
Then, as investors began to fear that the U.S. Federal Reserve wouldn’t cut interest rates anymore, stocks crashed 2.5% in December. It turned out to be one of their worst months in a year.
As we moved into 2025, stocks rebounded throughout January and early February thanks to renewed economic optimism…
But they’ve since crashed over the past few weeks as uncertainty about tariffs, federal spending cuts, and an economic slowdown weighs heavy on Wall Street. Indeed, since Feb. 10, the S&P has slid more than 6%.
Stocks have swung violently higher and lower many times over the past several months, all for the S&P 500 and the Nasdaq to be basically flat.
Is this intense volatility Wall Street’s ‘new normal’?
Despite renewed concerns about inflation and a consumer spending slowdown, the economy still appears to be on stable footing. It should benefit from deregulation and maybe even tax cuts over the next few months. Plus, the AI Boom remains alive and well, which should continue to create growth through the economy.
Additionally, the fourth-quarter earnings season has come to an end; and broadly speaking, it was a strong one.
As FactSet reported, “nine of the eleven sectors are reporting year-over-year earnings growth for Q4. Six of these nine sectors are reporting double-digit growth: Financials, Communication Services, Consumer Discretionary, Information Technology, Health Care, and Utilities.”
Meanwhile, the blended earnings growth rate is nearly 17%, which marks the index’s highest profit growth rate since 2021.
And trends are expected to stay strong for the foreseeable future. That is, next quarter, earnings are projected to rise about 8%, then another 9% in Q2. They are expected to rise almost 15% in the third quarter and about 13% in the fourth.
In other words, corporate earnings should keep rising for the rest of the year. Stock prices should follow suit.
However… I don’t think it’ll be a smooth ride higher…
The largest Canadian bank stocks have proven over the past decade that they not only endure recessions, but that they can grow at high rates coming out of a recession as well.
Canadian bank stocks also pay higher dividends than many U.S. bank stocks, making them potentially more appealing for income investors.
Valuations have also remained quite low recently, boosting their respective total return profiles as a result.
In this article, we’ll take a look at the “Big 5” Canadian banks – Canadian Imperial Bank of Commerce (CM), Royal Bank of Canada (RY), The Bank of Nova Scotia (BNS), Bank of Montreal (BMO) and Toronto-Dominion Bank (TD) – and rank them in order of highest expected returns.
Note: Canada imposes a 15% dividend withholding tax on U.S. investors. In many cases, investing in Canadian stocks through a U.S. retirement account waives the dividend withholding tax from Canada, but check with your tax preparer or accountant for more on this issue.
The top 5 big banks in Canada are very shareholder-friendly, with attractive cash returns. With this in mind, we created a full list of financial stocks.
You can download the entire list of ~210 financial sector stocks (along with important financial metrics like dividend yields and price-to-earnings ratios) by clicking the link below:
More information can be found in the Sure Analysis Research Database, which ranks stocks based on their dividend yield, earnings-per-share growth potential, and changes in the valuation multiple.
The stocks are listed in order below, with #1 being the most attractive for investors today.
Read on to see which Canadian bank is ranked highest in our Sure Analysis Research Database.
Table Of Contents
You can use the following table of contents to instantly jump to a specific stock:
The top 5 Canadian bank stocks are ranked based on total expected returns over the next five years, from lowest to highest.
Canadian Bank Stock #5: Canadian Imperial Bank of Commerce (CM)
5-year expected returns: 8.4%
Canadian Imperial Bank of Commerce is a global financial institution that provides banking and other financial services to individuals, small businesses, corporations, and institutional clients. CIBC was founded in 1961 and is headquartered in Toronto, Canada.
In addition to trading on the New York Stock Exchange, CM stock trades on the Toronto Stock Exchange, as do the other stocks in this article.
You can download a full list of all TSX 60 stocks below:
CIBC reported its fiscal Q4 and full-year 2024 earnings results on 12/05/24. For the quarter, the bank’s revenue climbed 13% year over year (“YOY”) to C$6.6 billion. Provision for credit losses (“PCL”) was C$419 million, down 23% from a year ago.
Naturally, the loan loss ratio was 0.30%, down from 0.35% a year ago. And net income came in C$1.9 billion (up 27%). Adjusted net income came in 24% higher at C$1.9 billion.
Ultimately, adjusted earnings per share (“EPS”) rose 22% to C$1.91. The adjusted return on equity was 13.4%, down from 14.0% a year ago.
The bank’s capital position remains solid with a Common Equity Tier 1 ratio of 13.3%, same as a year ago. CIBC raised its quarterly dividend by 7.8% to C$0.97 per share, equating an annual payout of $3.88 per share.
Bank of Montreal was formed in 1817, becoming Canada’s first bank. The past two centuries have seen Bank of Montreal grow into a global powerhouse of financial services and today, it has about 2,000 branches (including Bank of the West branches) in North America.
It generates about 45% of earnings from the U.S. (including Bank of the West) and the rest primarily from Canada. Bank of Montreal generates about 64% of its adjusted revenue from Canada and about 36% from the U.S.
Bank of Montreal reported its fiscal Q4 and full-year 2024 financial results on 12/05/24. For the quarter, compared to a year ago, revenue rose 7.7% to C$9.0 billion, while net income climbed 35% to C$2.3 billion and diluted earnings per share (“EPS”) rose 34% to C$2.94.
This jump in earnings was primarily due to the reversal of a fiscal 2022 legal provision related to a lawsuit associated with a predecessor bank.
Adjusted net income fell 31% to C$1.5 billion and adjusted diluted EPS fell 35% to C$1.90. Higher adjusted provision for credit losses (“PCL”) of C$1.5 billion (versus C$446 million a year ago) weighed on earnings.
The Royal Bank of Canada is the largest bank in Canada by market capitalization, and by total assets. RBC offers banking and financial services to customers primarily in Canada and the U.S.
The financial institution operates in four core business units: Personal & Commercial Banking (39% of FY2023 revenue), Wealth Management (31%), Insurance (10%), and Capital Markets (20%). Its revenue mix is roughly 59% Canada, 25% the U.S., and 16% international.
On 12/04/24, RBC reported solid fiscal Q4 and full-year 2024 earnings results. Compared to the prior year’s quarter, the bank reported revenue growth of 19% to C$15.1 billion. Management put aside a reserve of C$840 million in the form of provision for credit losses (“PCL”) that dragged down net income. The PCL was 17% higher than a year ago.
Additionally, non-interest expense rose 12% to $9.0 billion. Net income rose 7.2% year over year (“YOY”) to C$4.2 billion; on a per share basis, it rose 5.4% to C$2.91.
Adjusted net income was 18% higher at C$4.4 billion, and its adjusted diluted earnings-per-share (“EPS”) was C$3.07 (up 16%). The bank’s capital position was still solid with a Common Equity Tier 1 ratio at 13.2%, down from 14.5% a year ago.
The bank raised its quarterly dividend by 4.2% to C$1.48 per share, equating to an annualized payout of C$5.92 per share.
Canadian Bank Stock #2: Toronto-Dominion Bank (TD)
5-year expected annual returns: 10.1%
Toronto-Dominion Bank traces its lineage back to 1855 when the Bank of Toronto was founded. It is now a major bank with C$1.9 trillion in assets. The bank produces about C$14 billion in annual net income each year.
TD reported fiscal Q4 and full-year 2024 earnings results on December 5th, 2024. For the quarter, TD reported revenue growth of 18% year-over-year to C$15.5 billion. Provision for credit losses (“PCL”) rose 26% to C$1.1 billion.
However, net income still climbed 27% to C$3.6 billion. The adjusted metrics likely provide a better picture of TD’s normal earnings power.
The adjusted revenue climbed 12% to C$14.9 billion, and the adjusted net income fell 8% to C$3.2 billion, leading to adjusted diluted earnings per share (“EPS”) of C$1.72, down 5.5% year over year. Its PCL ratio as a percentage of average net loans and acceptances was 0.47%, up 8 basis points from a year ago.
The adjusted return on equity (“ROE”) was 13.4%, up from 10.5% a year ago. The bank’s capital position remained solid with a common equity tier 1 ratio of 13.1%, down from 14.4% a year ago.
Bank of Nova Scotia (often called Scotiabank) is the fourth-largest financial institution in Canada behind the Royal Bank of Canada, the Toronto-Dominion Bank and Bank of Montreal.
Scotiabank reports in four core business segments – Canadian Banking, International Banking, Global Wealth Management, and Global Banking & Markets.
Scotiabank reported fiscal Q4 and full-year 2024 results on 12/03/24. For the quarter, revenue rose 3.1% to C$8.5 billion, while non-interest expenses fell 4.2% to C$5.3 billion. Provision for credit losses (“PCL”) declined by 18% year over year (“YOY”) to C$1.0 billion, weighing less on earnings compared to a year ago.
As a result, net income rose 25% to C$1.7 billion and diluted earnings per share (“EPS”) rose 23% to C$1.22. The bank’s PCL as a percentage of average net loans & acceptances was 0.54%, down from 0.65% a year ago, whereas the PCL on impaired loans as a percentage of average net loans & acceptances was 0.55%, up from 0.42% a year ago.
The fiscal year saw revenue rising 4.5% to C$33.7 billion. Non-interest expenses increased by 3.0% to C$19.7 billion, while PCL rose 18% to C$4.1 billion.
The PCL as a percentage of average net loans & acceptances was 0.53%, up from 0.44% a year ago, whereas the PCL on impaired loans as a percentage of average net loans & acceptances was 0.46%, up from 0.32% a year ago.
Canadian bank stocks do not get nearly as much coverage as the major U.S. banks. However, income and value investors should pay attention to the big 5 Canadian bank stocks.
Royal Bank of Canada, TD Bank, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce are all highly profitable banks.
And, all 5 have reasonable valuations with dividend yields that are well above the U.S. bank stocks.
The following articles contain stocks with very long dividend or corporate histories, ripe for selection for dividend growth investors:
Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.
Are your holdings on the move? See my updated ratings for 159 stocks.
Source: iQoncept/Shutterstock.com
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 159 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
Article printed from InvestorPlace Media, https://investorplace.com/market360/2025/03/20250310-blue-chip-upgrades-downgrades/.
Last Friday provided fresh insights into the state of the labor markets in both the U.S. and Canada as of the end of February.
In the U.S., while the jobs report was close to expectations (151K jobs created versus the 160K forecast), the market was positioned on the softer side. A few cracks in the labor market added to the U.S. growth scare, prompting another day of sell-off in American stocks, which have significantly underperformed European and global equities year to date. Unemployment inched up to 4.1% from 4% in the previous month, and January’s payroll data was revised downward. Also notably, federal government employment declined by 10K in February. As highlighted in the previous Daily Market Update, there has been speculation that payroll data might eventually reflect the impact of DOGE’s federal employee layoffs. These effects are more likely to appear in the March payroll figures, due next month.
In Canada, the labor market report was notably weaker than expected. Employment increased by just 1.1K jobs in February, significantly below the anticipated 20K gain. This underperformance came as a surprise, given the strong momentum seen in previous months when 211K positions were added between November and January. On a positive note, unemployment edged down to 6.6% from 6.7% in the prior month, offering a modest silver lining amid the disappointing data.
For both the U.S. and Canada, next month’s job reports will likely shed light on the markets’ responses to tariff threats, ongoing uncertainty, and their implementation throughout February and March.
Now, after the disappointing job report in Canada, the aggregate data released in February along with tariffs uncertainty, the probability of a 25-bps cut by the Bank of Canada this coming Wednesday has increased to 87%. Also, this Wednesday the market will be expecting US February CPI data, where the core rate is expected to remain sticky at 0.3% MoM.
FX markets might see some consolidation, after a very volatile week focused on EUR and GBP upside movements and US dollar softness.
No Trump put to hope for?
Boris Kovacevic – Global Macro Strategist
The US dollar experienced its largest weekly decline since 2022, driven by a combination of tariff uncertainty, weaker economic data, and rising optimism in European markets following Germany’s historic debt announcement.
On Friday, the US labor market showed signs of softening, with nonfarm payrolls increasing by 151k, falling short of the 160k consensus estimate. While the deviation was not drastic, it added to broader concerns of an economic slowdown. At the same time, President Trump’s decision to postpone tariffs on Canada and Mexico failed to reassure investors, as markets continue to prioritize stability over short-term adjustments.
Investor sentiment toward the US economy has also been tempered by growing recognition that Trump’s second term may not deliver the economic boom some had anticipated. Both the President and Treasury Secretary Bessent emphasized the need for structural reforms, acknowledging that markets and the economy could face turbulence as the administration undertakes an overhaul of government policies. Government spending and employment have become bloated, according to Bessent, and a drawdown in both is needed. Investors will need to come to terms with the fact that there might be no “Trump put” in the end.
US equities ended the week lower, reflecting these concerns, though Federal Reserve Chair Jerome Powell provided a temporary boost on Friday. Powell reassured markets that the economy remains on solid footing and that he is not overly concerned about current conditions. However, his remarks failed to stem the dollar’s continued decline, which extended into the weekend.
While the dollar’s fall is primarily market-driven, history suggests that Trump’s favorability ratings tend to follow a similar trajectory. A strong dollar has often coincided with confidence in his economic policies, while periods of weakness—such as now—signal increasing investor skepticism. This isn’t to say that the dollar dictates poll numbers, but both serve as indicators of market and public sentiment. If the greenback’s slump reflects eroding trust in Trump’s economic agenda, could his approval ratings be next in line for a drop? With trade tensions rising and investors reassessing his second-term outlook, it’s a risk worth watching.
Looking ahead, investors will closely monitor economic data and policy developments, as uncertainty around trade, fiscal reforms, and monetary policy continues to shape market dynamics. The US inflation release will be a key event to watch this week.
Betting on Europe again
Boris Kovacevic – Global Macro Strategist
The euro strengthened last week, benefiting from broad dollar weakness, a shift in investor sentiment, and renewed fiscal optimism in Europe. Germany’s historic debt issuance announcement fueled expectations of stronger growth, while the European Central Bank’s quarter-point rate cut on Thursday was offset by a more cautious policy outlook.
On Saturday, ECB Executive Board member Isabel Schnabel warned that inflation in the Eurozone is more likely to remain above the 2% target for an extended period than to decline sustainably below it. Her remarks suggest growing resistance within the ECB to further rate cuts in the near term. Schnabel’s comments come as policymakers prepare for a pivotal April decision, with divisions emerging over how much further monetary easing is warranted. Meanwhile, Europe’s economic outlook continues to evolve as governments prepare to deploy hundreds of billions of euros in defense and infrastructure spending, particularly in Germany.
The euro saw strong gains last week, rallying 4.4% against the dollar. It was the largest advance since 2009, the year the German debt break had been introduced. However, the currency faced some resistance near $1.0850, as traders reassessed the implications of a hawkish ECB amid an improving economic outlook. Looking ahead, market participants will closely monitor Eurozone inflation data and ECB communications for further clues on monetary policy. With the bloc’s cyclical recovery gaining momentum and inflation risks still elevated, expectations of additional ECB easing are becoming increasingly uncertain.
Pound’s mixed fortunes
George Vessey – Lead FX & Macro Strategist
The pound has been caught in the crossfire of late, weakening against the euro, but strengthening against the US dollar. On the latter, due to US growth scares, more Fed easing being priced in has boosted UK-US rate differentials in the pound’s favour. GBP/USD surged 2.7% last week and above key moving average resistance levels, opening the door to a test of the $1.30 handle in the near-term. The daily chart is flashing overbought though, which suggests a correction lower, or period of consolidation is looming, but from a valuation perspective, GBP/USD is still 4% below its 10-year average of $1.35.
Against the euro though, given the huge spending plans from Europe, the pound suffered its worst week in two years, falling 1.6% before fading around its 50-week moving average, which has supported for over a year now. However, if GBP/EUR struggles to reclaim its 200-day moving average at €1.1929, then more downside could be in the offing, especially as the fiscal divergence between the UK and Eurozone could prove more euro positive due to growth differentials. However, a consolidation in the UK’s fiscal outlook should limit the downside risk in sterling, whilst near-term monetary policies and sterling’s carry advantage due to higher UK yields remains pound positive.
In the spotlight from the UK this week, we have monthly GDP data. The UK economy has been on a fragile footing since the second half of 2024, and January’s GDP should confirm a slowing in momentum from 0.4% m/m to 0.1%. However, the three-month average is expected to pick up from 0.0% to 0.2%. Unless we see any major deviation from the consensus, the data is unlikely to move the needle on Bank of England policy expectations.
*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
Redfin shares are surging 75% in premarket trading Monday after mortgage giant Rocket Companies announced it was buying the digital real estate brokerage in an all-stock deal valued at $1.75 billion.
Shares of the Detroit-based Rocket are down 11%.
Rocket said the transaction values Redfin shares at $12.50 each and “connects Redfin’s nearly 50 million monthly visitors to Rocket’s mortgage products.”
Redfin (RDFN) shares are surging 75% in premarket trading Monday after mortgage giant Rocket Companies (RKT) announced it was buying the digital real estate brokerage in an all-stock deal valued at $1.75 billion.
Shares of the Detroit-based Rocket are down 11%.
Rocket said the transaction values Redfin shares at $12.50 each and “connects Redfin’s nearly 50 million monthly visitors to Rocket’s mortgage products.”
Deal Seen Accretive to Rocket Adjusted EPS by End of 2026
Rocket added it “expects the combined company to achieve more than $200 million in run-rate synergies by 2027,” and that the deal is expected to be accretive to its adjusted earnings per share (EPS) by the end of 2026. Once the transaction closes, current Rocket shareholders will control 95% of the combined firm, while Redfin shareholders will own the rest.
“Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs and increases value to American homebuyers,” Rocket Companies CEO Varun Krishna said.
Entering Monday, Rocket Companies shares had added nearly a quarter of their value over the past 12 months, while Redfin stock had lost about 18% of its value in that span.
When Steve Jobs took the stage to unveil a new iPhone, it was like magic.
You weren’t just getting a sales pitch. He made you believe in the future.
Some CEOs run companies. Others shape the world.
After Jobs, I never thought I’d see it again in my lifetime.
Then came Jensen Huang.
Like Jobs, the NVIDIA Corporation (NVDA) CEO built a trillion-dollar empire. Also like Jobs, he has a signature look – a black leather jacket. And when he speaks, markets move.
In fact, we saw just how much impactful Huang’s words were on the market were back in January.
Huang, dressed in an alligator leather jacket fit for Las Vegas, took questions at a CES 2025 analyst Q&A. When the topic of quantum computing came up, he was blunt.
A “very useful” quantum computer? Maybe 20 years away, he said.
The US dollar experienced its largest weekly decline since 2022, driven by a combination of tariff uncertainty, weaker economic data, and rising optimism in European markets following Germany’s historic debt announcement.
On Friday, the US labor market showed signs of softening, with nonfarm payrolls increasing by 151k, falling short of the 160k consensus estimate. While the deviation was not drastic, it added to broader concerns of an economic slowdown. At the same time, President Trump’s decision to postpone tariffs on Canada and Mexico failed to reassure investors, as markets continue to prioritize stability over short-term adjustments.
Investor sentiment toward the US economy has also been tempered by growing recognition that Trump’s second term may not deliver the economic boom some had anticipated. Both the President and Treasury Secretary Bessent emphasized the need for structural reforms, acknowledging that markets and the economy could face turbulence as the administration undertakes an overhaul of government policies. Government spending and employment have become bloated, according to Bessent, and a drawdown in both is needed. Investors will need to come to terms with the fact that there might be no “Trump put” in the end.
US equities ended the week lower, reflecting these concerns, though Federal Reserve Chair Jerome Powell provided a temporary boost on Friday. Powell reassured markets that the economy remains on solid footing and that he is not overly concerned about current conditions. However, his remarks failed to stem the dollar’s continued decline, which extended into the weekend.
While the dollar’s fall is primarily market-driven, history suggests that Trump’s favorability ratings tend to follow a similar trajectory. A strong dollar has often coincided with confidence in his economic policies, while periods of weakness—such as now—signal increasing investor skepticism. This isn’t to say that the dollar dictates poll numbers, but both serve as indicators of market and public sentiment. If the greenback’s slump reflects eroding trust in Trump’s economic agenda, could his approval ratings be next in line for a drop? With trade tensions rising and investors reassessing his second-term outlook, it’s a risk worth watching.
Looking ahead, investors will closely monitor economic data and policy developments, as uncertainty around trade, fiscal reforms, and monetary policy continues to shape market dynamics. The US inflation release will be a key event to watch this week.
Betting on Europe again
Boris Kovacevic – Global Macro Strategist
The euro strengthened last week, benefiting from broad dollar weakness, a shift in investor sentiment, and renewed fiscal optimism in Europe. Germany’s historic debt issuance announcement fueled expectations of stronger growth, while the European Central Bank’s quarter-point rate cut on Thursday was offset by a more cautious policy outlook.
On Saturday, ECB Executive Board member Isabel Schnabel warned that inflation in the Eurozone is more likely to remain above the 2% target for an extended period than to decline sustainably below it. Her remarks suggest growing resistance within the ECB to further rate cuts in the near term. Schnabel’s comments come as policymakers prepare for a pivotal April decision, with divisions emerging over how much further monetary easing is warranted. Meanwhile, Europe’s economic outlook continues to evolve as governments prepare to deploy hundreds of billions of euros in defense and infrastructure spending, particularly in Germany.
The euro saw strong gains last week, rallying 4.4% against the dollar. It was the largest advance since 2009, the year the German debt break had been introduced. However, the currency faced some resistance near $1.0850, as traders reassessed the implications of a hawkish ECB amid an improving economic outlook. Looking ahead, market participants will closely monitor Eurozone inflation data and ECB communications for further clues on monetary policy. With the bloc’s cyclical recovery gaining momentum and inflation risks still elevated, expectations of additional ECB easing are becoming increasingly uncertain.
Pound’s mixed fortunes
George Vessey – Lead FX & Macro Strategist
The pound has been caught in the crossfire of late, weakening against the euro, but strengthening against the US dollar. On the latter, due to US growth scares, more Fed easing being priced in has boosted UK-US rate differentials in the pound’s favour. GBP/USD surged 2.7% last week and above key moving average resistance levels, opening the door to a test of the $1.30 handle in the near-term. The daily chart is flashing overbought though, which suggests a correction lower, or period of consolidation is looming, but from a valuation perspective, GBP/USD is still 4% below its 10-year average of $1.35.
Against the euro though, given the huge spending plans from Europe, the pound suffered its worst week in two years, falling 1.6% before fading around its 50-week moving average, which has supported for over a year now. However, if GBP/EUR struggles to reclaim its 200-day moving average at €1.1929, then more downside could be in the offing, especially as the fiscal divergence between the UK and Eurozone could prove more euro positive due to growth differentials. However, a consolidation in the UK’s fiscal outlook should limit the downside risk in sterling, whilst near-term monetary policies and sterling’s carry advantage due to higher UK yields remains pound positive.
In the spotlight from the UK this week, we have monthly GDP data. The UK economy has been on a fragile footing since the second half of 2024, and January’s GDP should confirm a slowing in momentum from 0.4% m/m to 0.1%. However, the three-month average is expected to pick up from 0.0% to 0.2%. Unless we see any major deviation from the consensus, the data is unlikely to move the needle on Bank of England policy expectations.
*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
