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European equities mixed, US indices move slightly higher
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The ECB slows down the pace of PEPP, but says this isn’t tapering
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Oil prices experience sharp moves
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US jobless claims fall more-than-expected
Thursday’s trading day was all about the ECB’s decision, which was undoubtedly an event of the day. The central bank slowed down the pace of its Pandemic Emergency Purchase Programme (PEPP), which will now be conducted at “moderately lower pace”. However, the ECB President Lagarde said that the move should be seen as recalibrating the PEPP, rather than tapering.
In the evening the euro is gaining against the US dollar, but it is worth to note that the greenback is weaker across the board today. Therefore, the ECB’s impact may be limited here. European stocks caught a bid after the ECB’s decision, but still finished the session mixed. The German DAX closed 0.08% higher, but indices from several European countries fell.
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Create account Try a demo Download mobile app Download mobile appUS stocks moved higher after upbeat jobless claims data. The number of Americans filing new claims for unemployment benefits declined to a new pandemic low of 310k (vs exp. 335k). However, major US indices are trading near the flatline at press time. The volatility on the oil market picked up today due to some stunning headlines. First of all, the Suez Canal was reportedly blocked again, but the issue was fixed quickly. Also, China released strategic reserves, which put oil prices under pressure. WTI prices also hovered due to DOE’s data on oil inventories.
Four Fed members are still set to speak today (at 7 pm BST). Tomorrow markets are set to focus on economic data from the UK (including GDP and industrial production), PPI inflation from the United States for August and labour market report from Canada.
OIL.WTI price experienced some wild moves today. In the evening European time oil prices tumbled again. Taking a look at the H1 interval, the price is currently testing the local upward trend line. In fact, the price broke below for a brief moment minutes earlier - was it just a false breakout? We shall see. The $67.10 mark may be the next support should the price move lower. Source: xStation5
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