• US Stocks slightly higher as stimulus bill talks continue
• BOE sees slower economic recovery from COVID hit
• Precious metals rally continues
• BOE sees slower economic recovery from COVID hit
• Precious metals rally continues
European equities finished today's session lower due to uncertainties regarding the US coronavirus relief package and mixed bag of quarterly earnings. Disappointing results from Glencore, AXA, Beiersdorf, Pirelli, ING, Munich Re and Aviva weighed on market sentiment. On the other hand, UniCredit, Merck KGaA and Adidas posted better than expected figures. German industrial orders data came in above analysts' forecasts which may be sign that Europe's largest economy might start recovering from the pandemic hit. Meanwhile, the Bank of England left monetary policy unchanged, saying Britain's economy will probably take longer to recover than initially thought. During today's session DAX 30 fell 0.5%, and both CAC 40 FTSE 100 finished 1% lower.
US indices are trading slightly higher as investors are waiting for new information regarding the fiscal aid package. For now it seems that negotiations are stuck as both parties cannot reach an agreement on major issues including the size of a federal benefit for the unemployed as they work towards a relief legislation. Yesterday White House negotiators said that they are prepared to walk away from the talks and use executive actions by President Trump if an agreement isn’t within reach by the end of the week. Today president Trump confirmed via Twitter, that work on the payroll tax and eviction protections orders will be continued.
Today's economic data was mixed as Unemployment Claims numbers decreased for the first time in three weeks, while other report announced by employers in July showed a 54% surge in job cuts.
On the earnings front Western Digital stock plunged 16.7% after the company posted lower quarterly revenue and weak forecast for the next quarter. Norwegian Cruise Line Holdings Ltd and Hilton Worldwide Holdings Inc both quarterly loss exceeded market expectations. Bristol-Myers Squibb Co and Viacom results surprised on the upside.
Still, despite low volatility Nasdaq hit a new record high in early trading. Meanwhile S&P 500 and Dow Jones are approximately 2% and 8% away from their February highs.
Still, despite low volatility Nasdaq hit a new record high in early trading. Meanwhile S&P 500 and Dow Jones are approximately 2% and 8% away from their February highs.
Market bulls continue to dominate the precious metal market. During today's session spot gold hit a new all-time high of $2,060 per ounce. Gold gained almost 40% since the pandemic started. Meanwhile silver rose more than 5% to cross $28 an ounce on Thursday, its highest level since April of 2013. Silver prices are now up around 130% from March’s multi-year lows.
Oil prices rose more than 0.5% to fresh 5-month highs in a volatile session on Thursday, with WTI crude trading at $42.44 a barrel and Brent around $45.5 a barrel, helped by the weaker US dollar and the prospect of a fresh stimulus in the US.
When it comes to tomorrow’s calendar, NFP report release will be the big event of the day (1:30 pm BST) and is likely to impact FX pairs and stocks. It is expected to show the US unemployment rate rising to 10.5% in July. At the same time figures from Canada's labour market will be published. Earlier investors will get to know RBA Monetary Policy Statement and a lot of industrial production and trade balance figures from the Eurozone.
GBPJPY - pair is approaching upward trendline which is additionally strengthened by 100 MA (green line). Should sellers manage to break below it, a new downward impulse could be launched which may lead towards support at 137.75. On the other hand, if buyers manage to halt decline there, resistance at 139.23 may be at risk. Source: xStation5
