Daily summary: Global stocks waver after jobless claims data

9:14 PM January 21, 2021

  • ECB's Lagarde warns, that worsening pandemic poses 'serious risks'
  • ECB keeps rate unchanged
  • Nasdaq hit new record, while Dow Jones and S&P500 remain flat

European indices finished today's session lower. ECB president Christine Lagarde pointed that the ever increasing number of infections and the associated intensification of containment measures may have negative impact on activity in the Q1, while risks to the economy remained tilted to the downside but were "less pronounced". The ECB kept interest rates and its QE programme unchanged, however is willing to provide more stimulus as the pandemic is far from controlled in Europe. On the data front, Eurozone consumer confidence fell more than expected in January. DAX 30 fell 0.1%, CAC40 lost 0.7% and FTSE100 finished 0.4% lower.

Mixed moods can be spotted in the US markets, with Dow Jones and the S&P 500 trading around the flatline after reaching new all-time highs yesterday. However Nasdaq jumped to a record high today as investors bet on strong earnings from big tech companies next week. Apple’s stock rose 3% after Morgan Stanley announced that it expects a record December quarter print for the tech giant. Investors remain optimistic about other major technology companies as well. Apple, Microsoft and Facebook have all risen at least 5% this week ahead of their quarterly figures. Meanwhile Intel, IBM and CSX will report their financial results today after the after session closes. On the data front, initial jobless claims fell more than expected to 900K and both housing starts and building permits surprised on the upside.

US crude futures are trading 0.45% lower around $53.00 per barrel, while Brent contract fell 0.11% above $ 56.00 per barrel as resurgence of pandemic in China led to lockdowns in the Hebei province and government urged citizens to avoid travel during the Lunar New Year holidays next month. Meanwhile API report showed US crude inventories unexpectedly rose by 2.562 million barrels and while analysts expected 0.28 million decline. Elsewhere, gold futures fell 0.25% to $ 1,866.00 / oz, while silver is trading flat near $ 25.80 / oz. Bitcoin fell sharply and is trading below $32,000 level.

Bitcoin price is approaching key support level at $30,360 which is additionally supported by 200 SMA (red line). Should a break below occur, then downward move could be extended to the $27,718 level. On the other side, if buyers will manage to halt declines there, then another upward impulse towards resistance at 36,255 level could be launched. Source: xStation5

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