The FTSE 100 Index held steady near its all-time high of £10,250 as the recent bull run stalled amid a new tariff war between the US and the UK. It was trading at £10,200, up by 35% above the lowest level in April last year. It has jumped by 3% this year.

FTSE 100 Index steady after Trump tariff threat 

The FTSE 100 Index reacted mildly to the new tariff threat from Donald Trump during the weekend. He warned that the US will implement additional tariffs on goods shipped from the UK and other European countries starting from February 1.

The tariff rate will then grow to 25% in June if the United States does not complete or made progress on its purchase of Greenland. 

Therefore, the ongoing performance of the Footsie is a sign that investors anticipate that the tariff threat will not be implemented. Also, the index has jumped to a record high after the US implemented its tariff last year.

Additionally, there is a likelihood that the Supreme Court will strike down these tariffs as soon as Tuesday this week.

Key catalysts for UK stocks this week 

The FTSE 100 Index will have some more catalysts this week. First, there will be some earnings this week, which will shed more color on the performance of key companies. Some of the top companies that will release their numbers this week are Burberry, JD Sports, JD Weatherspoon, Curry’s, Associated British Foods, and Harbour Energy.

These earnings will come in the same week that more American companies will publish their financial results. Some of the most notable of these companies are Netflix, GE Aerospace, Johnson & Johnson, and Procter & Gamble.

The FTSE 100 Index will react to key macro data from the UK, which will provide more information about the state of the economy. 

The Office of National Statistics (ONS) will publish the latest jobs report on Tuesday, with economists expecting the report to show that the unemployment rate improved from 5.1% in October to 5% in November.

Additionally, the UK will release the December consumer and producer inflation report on Wednesday. Economists expect the upcoming report to show that the headline CPI rose from 3.2% in November to 3.3% in December, while the core CPI moved to 3.3% as well.

If these numbers are accurate, it means that the Bank of England (BoE) will likely maintain its interest rates unchanged in the coming months. This explains why the ten-year Gilt yield has jumped from 4.3% in January 14 to the current 4.41%.

The ONS will then release the latest retail sales data on Friday this week.

FTSE 100 Index technical analysis

The daily timeframe chart shows that the FTSE 100 Index has rebounded in the past few months, moving from a low of £7,538 in April last year to the current £10,220. 

It recently moved above the important resistance level at £9,920, its highest level on November 12.

The Relative Strength Index  (RSI) and the Percentage Price Oscillator (PPO) have continued rising, with the former moving to the overbought level of 73.

Therefore, the most likely scenario is where the index continues rising as bulls target the next key resistance level at £10,500. A move above that level will point to more gains, potentially to the psychological level at £11,000.

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Rheinmetall share price continued rising on Monday, reaching €1,960, its highest point since October, and a few points below the all-time high of €2,010. It has jumped by nearly 40% from its lowest point in December, bringing its market cap to over €90 bilion. 

European defense stocks are soaring

Other European defense stocks also continued rising. BAE Systems’ stock rose to 2,130p, up by 35% from its lowest point in December. Babcock International rose to a record high of 1,500p, while other companies like Safran, Leonardo, and Dassault Aviation have also soared. 

Rheinmetall and other European defense stocks jumped as tensions between the European Union and the United States rose during the weekend.

Donald Trump has insisted that the US will own Greenland and has not ruled out using military force to achieve this goal. He has already warned that he will impose tariffs on some European countries starting from February 1. 

The current events and last year’s trade war has pushed more European countries to start taking their security seriously than they did in the past. European leaders believe that Washington will not be a reliable ally in the future.

Countries have already started boosting their defense spending. Germany boosted the defense budget to €108.2 billion, its biggest spending on recrd. The regulat Bundeswehr budget stands at €82.7 billion, up from €29.4 billion, while the special fund allocated €252.5 billion. 

Germany hopes that it will boost its defense budget to about 3.5% of GDP by 2029. Other countries, including France, Italy, and Spain, are also boosting their defense spending, a move that will benefit top European defense spending, including Rheinmetall. 

At the same time, the company will benefit from Donald Trump’s desire to boost US defense spending to $1.5 trillion. It supplies infantry fighting vehicles, munitions, and autonomous vehicles to the defense department. 

Revenue growth and backlog growing

The most recent financial numbers showed that Rheinmetall’s business continued doing well in the third quarter. Its backlog jumped to €80 billion, up from €54 billion in 2024 and €38 billion in 2023.

The company’s revenue jumped from €7.17 billion in 2023 to €9.7 billion in 2024. Its estimate for 2025 is expected to be between €11.3 billion and €12.2 billion, while its operating margin will get to 15.5%.

Therefore, there are signs that the company’s growth will accelerate in the coming years, with its revenue reaching €20 billion in the coming years. 

However, there is a risk that the company’s valuation has become stretched. Data show that its forward P/E ratio has jumped to over 40, and its PEG ratio has movded to 1.18. These are huge numbers, meaning that the company is priced at perfection.

Rheinmetall share price technical analysis

The daily chart shows that the Rheinmetall stock price has rebounded in the past few months. It has moved from a low of €,411 in December last year to the current €1,958. It is now hovering at the highest point since October 8.

The stock has moved above the 50-day and 100-day Exponential Moving Averages (EMA). It is also nearing the important resistance level at €2,010, its highest point in October.

Therefore, the stock will likely continue rising and possibly retest the all-time high of €2,010. A move above that level will point to more gains, potentially to the key resistance at €2,125, the extreme overshoot of the Murrey Math Lines tool.

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Dow Jones Index futures pulled back on Monday, continuing a weakness that started on Friday. It retreated by over 300 points and moved below the key support level at $49,000. It has now dropped by nearly 2% from its highest point this year. This article looks at some of the top catalysts for the index this week.

Dow Jones Index to react to new US-Europe trade conflict

The Dow Jones Index futures pulled back on Monday as investors reacted to the new tariff war between the United States of America and the European Union.

The new conflict started on Saturday when Donald Trump warned that some European countries, like Germany and France would pay an additional 10% tariff for their support of Denmark and Greenland.

This tariff will rise to 10% on February 1, and then move to 25% until the United States completes its purchase of Greenland, a semi-autonomous region controlled by Denmark.

The European Union is considering adding tariffs worth €93 billion of its own in response to Trump’s threats, a move that will lead to a downward spiral, with Trump expected to boost his figure in case of retaliation.

Additionally, France has asked the bloc to hit the United States with its anti-coercive rules, which have never been used before. The rules include investment restrictions, which can throttle services offered by the biggest American companies like Microsoft and Meta Platforms.

On the positive side, Trump’s is set to meet with some senior European leaders at the World Economic Forum, where the two sides may announce a deal.

World Economic Forum in Davos 

The other important catalyst for the Dow Jones Index this week will be the World Economic Forum in Davos, Switzerland. This is an annual event that brings together top leaders in government and corporations to discuss key issues.

The keynote speaker in this event will be Trump, who has pledged to announce major policies, including on housing. Specifically, Trump said that he would bar institutional investors from buying residential houses, as he focuses on the affordability issue. He will also talk about his efforts to lower credit card interest rate.

The Dow Jones Index will also react to statements from other leaders in this summit this week.

Corporate earnings in the spotlight 

The Dow Jones Index will also react to the ongoing earnings season that will see hundreds of companies in the United States publish their numbers.

Netflix will be the key company to watch this week when it publishes its report, as investors will have a chance to hear the management’s view on the ongoing Warner Bros buyout.  

More American companies like GE Aerospace, Johnson & Johnson, 3M, Truist, Kinder Morgan, Intel, and Procter & Gamble will be the top companies to watch this week.

SCOTUS decision on Donald Trump’s tariffs 

The other major Dow Jones Index news this week will come out on Tuesday when the Supreme Court releases the ruling on Donald Trump’s tariffs.

Analysts have a mixed opinion on what to expect from the bank, with some of them expecting the court to end the tariffs. A Polymarket poll also expects that the court will do that, a move that would benefit American companies  

Still, the cheer would be short-lived as Trump will have other tools to implement tariffs.

The Dow Jones Index will also react to other macro data from the US, including the upcoming US inflation report and the flash manufacturing and services PMI numbers.

Dow Jones Index technical analysis

The daily chart shows that the Dow Jones Index has rebounded in the past few months. It has soared from a low of $36,700 in April last year to a high of $49,855 this year. 

The index has remained above the 50-day and 100-day Exponential Moving Averages (EMA). It has also formed an inverse head-and-shoulders pattern whose neckline is the ascending trendline that connects the highest swings since July last year.

Therefore, the most likely scenario is where it rebounds later this year, with the next target being $50,000.

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HYPE crypto price has pulled back in the past few months, moving from a record high of $60 in September to the current $25.8, a 56% retreat. Hyperliquid’s token has also formed numerous risky patterns, pointing to more downside in the near term. 

HYPE crypto price technicals points to more downside

The daily timeframe chart shows that the HYPE crypto price has dropped in the past few months. This retreat happened after it peaked at $60 in September. It retreated after forming a head-and-shoulders pattern, a common bearish reversal sign.

The token has dropped below the 61.8% Fibonacci Retracement level at $28.5, confirming the bearish outlook. It has also dropped below all moving averages, a sign that bears remain in control for now.

Hyperliquid price has also formed a bearish flag pattern, which is made up of a vertical line and an ascending channel. This pattern often leads to more downside. It also remains below the Supertrend indicator. 

Therefore, the most likely HYPE price forecast is bearish, with the next target being at $20. This target is about 22% below the current level. On the other hand, a move above the key resistance level at $28 will invalidate the bearish outlook.

HYPE price chart | Source: TradingView

Hyperliquid’s perpetual DEX is facing stiff competition

The main reason why the HYPE crypto price has crashed in the past few months is that Bitcoin and other altcoins have been in a strong downtrend. Bitcoin has dropped from the year-to-date high of $126,200 in October to the current $95,000. Other top altcoins like Ethereum and Cardano have all slumped. 

Meanwhile, key Hyperliquid metrics have deteriorated in the past few months, partly because of the ongoing crypto market crash and the rising competition in the perpetual futures market.

Data compiled by DeFi Llama shows that the volume in the perpetual futures market has dropped from last year’s high of $1.32 trillion in October to this month’s $521 billion.

Hyperliquid’s volume has dropped from a high of $396 billion in August to this month’s $94 billion. As a result, its monthly fees have tumbled to $36 million, down from last year’s high of $144 million.

More data shows that competition in the network has continued rising, with most of it coming from Aster, Lighter, and Grvt. Aster network handled over $123 billion in the last 30 days, while Lighter’s volume was $118 billion. 

Grvt handled $40 billion, and Hyperliquid processed transactions worth over $145 billion. In the past, Hyperliquid was the most dominant player in the industry.

Hyperliquid’s metrics have deteriorated in the past few months. For example, the total value locked (TVL) in its layer-1 network has plunged to $2.65 billion from the all-time high of $8.35 billion. Also, the stablecoin supply in the network has dropped to $4.9 billion from the all-time high of $6.2 billion.

All these metrics have affected the number of HYPE token buybacks and token burns. That is because the network uses its fees to burn HYPE tokens and repurchase them, which helps to reduce the supply.

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Circle stock price remains under pressure this year, continuing a downward spiral that started in June last year when it peaked at $298 shortly after its initial public offering (IPO). CRCL stock dropped to $78.50, down by 75% from its highest level in June. This article explores some of the key reasons why the stock has crashed.

Circle stock has crashed as USDC growth stalls 

The first main reason why Circle stock has crashed is that data shows that the supply of USD Coin (USDC) has stalled in the past few months. 

Data compiled by CoinMarketCap shows that the market capitalization stands at $75.55 billion today. It has remained inside this range since August last year.

While USDC usage has jumped, the market capitalization has remained under pressure in the past few months, which will have a direct impact on its business because of how the business works. Like other stablecoin companies, it makes money by investing its cash holdings in short-term government bonds.

Therefore, there is a likelihood that its revenue growth will remain under pressure in the near term. Data compiled by Yahoo Finance shows that the upcoming revenue will be $751 million, while its annual figure will be $2.72 billion. It is expected to make $3.3 billion this year.

Valuation concerns remain

Circle stock has also plunged in the past few months because of valuation concerns. At its peak in 2025, the company had a market capitalization of $60 billion. 

A $60 billion valuation was highly excessive, considering that USDC had a market cap of over $61 billion at that time. Still, despite its recent drop, there are signs that the company is highly overvalued.

Assuming that Circle invests all its assets in short-term government bonds yielding 4%, it will make over $3 billion this year. Its profit will be much lower since Coinbase takes a substantial amount. 

Also, there is a risk that its profits will be lower as the Federal Reserve cuts rates. As such, a $20 billion valuation is still relatively high for the company. 

Arc Blockchain faces some risks

A potential catalyst for the Circle stock is that it is planning to launch Arc, a layer-1 blockchain network for payments. 

Arc has already secured major partnerships with some of the biggest companies globally, including companies like Alchemy, BlackRock, BNY, and Axelar.

The main risk that Arc faces is that the layer-1 and layer-2 industries have become saturated. 

While more chains have come up, Ethereum has continued to gain market share. It has a market dominance of 76% in the decentralized finance industry, while Solana and BSC are far behind.

There are other reasons why the Circle stock has remained under pressure. First, analysts have remained neutral on the company, with the most recent notes from Goldman Sachs HC Wainwright, and Wolfe Research having a neutral outlook.

Second, competition in the stablecoin industry is still stiff, with Tether, Ripple USD, USD1, and PayPal USD seeking to gain market share  

Third, the stock dropped as cryptocurrencies retreated after the new developments on the CLARITY Act, which stalled in the Senate ahead of its markup.

Circle stock price technical analysis 

Technicals also explain why the CRCL stock price has crashed in the past few months. It has remained below all moving averages, and most recently, it formed a bearish flag pattern, which is made up of a vertical line and a rectangle channel.

The stock has also remained below the Supertrend indicator and the Parabolic SAR tool. Therefore, the most likely scenario is where the Circle stock experiences a big bearish breakdown, potentially to the all-time low of $63.

In the long term, however, there is a likelihood that the stock will bounce back as its growth and profitability rise.

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Robinhood stock price is stuck in a bear market after falling by nearly 30% from its highest level in 2025. Its drop accelerated on Thursday after the new developments on the CLARITY Act in the US Senate. It moved to a low of $110, its lowest level since October last year. This article explores whether it is a good buy today.

Why Robinhood stock has crashed 

There are a few reasons why the Robinhood stock price has crashed in the past few months. First, the decline is happening as investors book profits after the strong surge that happened last year when it became the best gainer in the S&P 500 Index. It is common for stocks to drop after experiencing a strong surge over time.

Second, in line with the first point, the stock dropped after the company entered the S&P 500 Index last year. In most cases, companies surge after entering a major index since this leads to forced buying by fund managers. The stock then loses momentum a few months later as the buying eases.

Third, HOOD stock retreated on Thursday after the Senate Banking Committee paused the progress on the closely-watched CLARITY Act in the United States. This pause happened after Coinbase, the biggest cryptocurrency exchange in the country withdrew its support, citing the limitations to stablecoin rewards.

Robinhood’s Vlad Tenev noted that his company still supported the legislation because it would allow it to offer staking solutions to its customers.

While Robinhood is known for stocks and options, its crypto business is still growing. It offers crypto services through its main product and Bitstamp, the company it acquired last year. 

Further, in line with this, the decline happened because of the crypto market crash that happened and accelerated in the fourth quarter. Bitcoin bottomed at $80,000 from its all-time high of $126,300 in October. Activity in the crypto industry often eases whenever Bitcoin and other altcoins are falling.

Robinhood stock fell because of valuation concerns. While its multiples have improved, the company remains highly valued, with its forward price-to-earnings ratio rising to 50, higher than the sector median of 13.

Robinhood has major catalysts

Still, despite its challenges, Robinhood has some major catalysts ahead. For one, it has become a major player in the tokenization industry. It launched hundreds of tokenized stocks in Europe and there is a likelihood that it will expand the service to other countries.

Robinhood’s business is expected to keep growing as new products start to mature. The average estimate is that its annual revenue in 2025 was $4.53 billion, up by 53% YoY, while its earnings-per-share rose to $2.03, up from $1.56. The company’s revenue is then expected to hit $5.52 billion this year.

Robinhood has also continued to gain its market share in the trading industry because of its popularity among young people. This explains why its user count has continued growing in the past few years despite the stiff competition in the industry.

Additionally, analysts are highly bullish on the stock, with the average estimate among analysts being at $149, much higher than the current $110.

HOOD stock price technical analysis 

Robinhood stock chart | Source: TradingView

The daily timeframe chart shows that the HOOD stock price has come under pressure in the past few months as it plunged from $153 to $110 today.

It has remained below the descending trendline that connects the highest swings since October 31st.

A closer look shows that it has formed an inverse head-and-shoulders pattern, a common bullish reversal sign in technical analysis.

Therefore, the stock will likely bounce back in the coming weeks as investors attempt to retest last year’s high of $153. This view will be confirmed if it moves above the descending trendline  

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