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

The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. X-Trade Brokers Dom Maklerski S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back