• US Jobless Claims worse than at the peak of the financial crisis.
• BoE Holds Interest Rates at Record Lows
• European indices recover after volatile session
Global equity markets traded higher today, despite that US jobless claims surged to a record high of over 3 million. The European stock indices erased early losses and finished session higher encouraged by strong gains in Wall Street. Investors look ahead further stimulus package aimed at helping workers and industries affected by the corovirus outbreak. Also comments from chairman Powell pointed that FED is ready to take all necessary steps in order to support the economy. During today's trading session Dax gained 1.28%, CAC 40 rose 2.51% and FTSE100 closed 2.24% higher. Dow Jones went up 4.38%, S&P500 advanced 4.18%% and NASDAQ rose 3.29%
The dollar index depreciated further on Thursday to trade below 100 after disappointing jobless claims numbers. In recent days, the USD was already falling as investors remain very concerned about the economic impact of the coronavirus outbreak in the US.
The British pound soared today and managed to break above $1.21 , after the Bank of England kept rates unchanged as expected, after slashing them to record lows earlier this month. BOE also kept its bond-buying programme at GBP 645 billion, after expanding it by GBP 200 billion before. BOE forcasts that UK GDP might fall sharply during the first half of the year and unemployment is likely to rise rapidly across the country. UK Chancellor Rishi Sunak unveiled his plan to support Britain's 5 million self-employed workers through the crisis, with main measures including a taxable grant for the self-employed worth 80% of average monthly profits over the last three years.
Gold prices rose 2,02% today as a record increase in U.S. jobless claims encouraged expectations of yet more stimulus, a process that many gold investors will ultimately lead to the debasement of fiat currencies.
Oil prices fell sharply today following three days of gains, with the prospect of rapidly dwindling demand due to coronavirus travel bans and lockdowns offsetting hopes a US $2 trillion emergency stimulus will manage to push oil prices higher.
There are no major, market moving data scheduled for tommorow, therefore trading is likely to be dominated by headline news. Volatility is expected to continue as investors worry about how the coronavirus outbreak will affect the global economy. The number of people infected with the coronavirus across the world surpassed 500,000 therefore investors should expect more wild swings as fears of a deep and lasting global recession and corporate defaults rage amid a breakdown in business activity.
EUR/USD is trading above 1.10, a level not seen since March 18. The world's most popular currency pair soared 1.34% today. If the positive sentiment remains on the market, then the 1.1094 resistance level could come into play. Key near-term resistance can be found at 1.10. On the other hand, should bears regain control, the currency pair may look to test the support at 1.0901. Source: xStation5
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