Daily summary: Global equities struggle, the pound swings on BoE’s decision

• Global stocks below the flatline

• Natural gas plunges as much as 11%

• Negative interest rates headlines after BoE’s announcement

After yesterday’s Fed announcement, sentiment on global stock markets got significantly worse. European equities finished the day below the flatline. DAX lost 0.36% while CAC 40 sank 0.69%. Italian blue-chip index fell more than 1%. U.S. markets opened in the red territory as well. Tech stocks lag the most as Nasdaq plunged over 2% at press time.

As far as commodities are concerned, natural gas sees some huge swings today as it plunges roughly 11%. Oil prices tend to push higher with both Brent and WTI above $40 a barrel. Precious metals are trading slightly below the flatline. The pound dived after the BoE’s announcement (and negative rates headlines) but managed to erase losses. 

Today’s calendar was full of key events. Both BoJ and BoE kept interest rates unchanged. As Bank of England mentioned possible negative interest rates, GBP fell shortly after the announcement. New Zealand released its Q2 GDP report - country’s economy shrank 12.2% (vs exp. 12.8%). Australian unemployment rate in August came in below expectations (6.8% vs exp. 7.7%) while U.S. jobless claims fell to 860k. 

Friday will bring crucial retail sales reports form the UK (7 am BST) and Canada (1:30 pm BST). In the afternoon Russian central bank will release its interest rate decision. Investors might also pay attention to Michigan Consumer Sentiment from the United States as well as Baker Hughes oil rig. 

The pound tumbled amid headlines on negative interest rates. Nevertheless, the currency managed to erase some losses and climbed as much as 1.2998 in the afternoon. Source: xStation5