• US Jobless Claims higher then expected
• Oil Prices Pare Early Gains
Global equity markets traded higher on Thursday after Fed announced huge loan program to support households, businesses and local governments across the US. Federal Reserve will provide up to $2.3 trillion in loans in order to support the economy ultimately providing a credit backstop. Moods were boosted by hopes that the coronavirus pandemic was close to peaking.
FED actions completely overshadowed the initial jobless claims data which showed a bigger than expected value. Initial jobless claims came in at 6606k against expected 5500k. The University of Michigan's consumer sentiment for the US fell to 71 in April of 2020 from 89.1 in March, missing market expectations of 75. It is the lowest reading since December of 2011 and the largest monthly decline ever recorded.
During today’s session Dow Jones rose 2.0 %, S&P500 went up 2.17 % and NASDAQ is trading 0.71 % higher.
Euro strengthen after German Finance Minister Olaf Scholz advised that a agreement regarding economic support package could be reached today. EU finance ministers resumed talks on coordinated action against the pandemic after they failed to reach agreement on Tuesday due to divisions about whether Member States should set fiscal targets in exchange for new funding, and whether joint debt issuance should be considered. European indexes finished in green today. DAX gained 2.2%, CAC 40 advanced 1.4% and FTSE 100 finished 2.9% higher.
Oil erased most of the earlier gains in another volatile session as markets await the outcome of the OPEC+ video conference meeting. Initially oil prices went higher after Reuters reported that Saudi Arabia and Russia reached a deal and that production cuts could reach 20 million barrels per day while markets were expecting a smaller 10-15 million cut. However, Russia insisted on such an agreement only when the United States joins in to help balance the market. The US crude is up 1% to around $25.50 a barrel, after jumping as much as 12% to $28.36 a barrel. The Brent crude is up 1.5% to $33.32 a barrel after rising more than 10%. Also, a possible agreement to cut oil production at OPEC+ meeting still brings doubts about whether it will be enough to offset lower demand.
Gold price rose 2.40% as $1,685 on Thursday, a level not seen since March 9th. Silver soared 3.70% as $15.52.
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