• European stocks higher as China exports rebound
• BOE leaves interest rates unchanged
• US Unemployment claims above 3.1 milion
• BOE leaves interest rates unchanged
• US Unemployment claims above 3.1 milion
European indices finished Thursday session in green as investors welcomed the fact that Chinese exports for April came in above expectations. Markets hope that China may recover faster than anticipated and support global growth. In regards to macroeconomic data, industrial production in Germany and France fell at record pace. Bank of England left interest rates unchanged and its target for bond-buying at £645 billion. BOE is willing to intensify its asset purchase program from June in order to support the economy which has been severely affected by the pandemic. The BoE expects that the economy will shrank by 25% in the April-June period and by 14% in full 2020, before rebounding by 15% in 2021.
Today DAX 30 gained 1.3%, CAC 40 rose 1.5%, FTSE 100 finished 1.5% higher, Ibex advanced 0.4% and FTSE MIB added 0.4%
US stocks are also trading higher despite another set of weak macroeconomic data. Today's unemployment claims report showed 3.17 million Americans applied for state unemployment benefits last week, but the number marked the fifth straight weekly decline in applications. The Challenger report showed US companies cut the most jobs on record in April. Meanwhile, tensions between Washington and Beijing increased after President Trump said he was "watching closely" whether China is fulfilling its obligations under the Phase 1 trade deal, days after he threatened new tariff action against Beijing over the coronavirus outbreak. Today both PayPal (PYPL.US) and Lyft (LYFT.US) posted better than expected quarterly results.
"With expectations just set so low, any positive news is really being welcomed, and the continuing negative news, to some extent, is being pushed to the side," said Rick Meckler a partner at Cherry Lane Investments in New Vernon, New Jersey.
At the moment Dow Jones rose 1.52 %, S&P gained 1.68% and Nasdaq is trading 1.65% higher. Spot gold extended gains to trade around $1,714 /oz, after declining more than 1% in the previous session.
Uber Technologies (UBER.US) shares rose 7%. Company will report quarterly results today after markets close.
UBER (UBER.US) shares price soared during today’s session, managed to break above 200 MA (red color) and is heading towards resistance at $31.94 per share. Source: xStation5Tomorrow's main event will be the Non-Farm Employment Change report for April. Analysts are forecasting at least 21 million job losses and an unemployment rate of 16 % or more — the highest rate since the Great Depression of the 1930s. As for market movements, if the report will hold data worse than the expectations, then this might push the investors to revise the impact of the coronavirus pandemic and the effectiveness of the stimulus measures - in terms of the time factor - on the economy. Besides that investors will get to know labor figures from Canada and RBA Monetary Policy Statement.
USDCAD pushed below the downward trend line and is heading towards 1.3909 level which had been serving as support since mid-March. If this level breaks, then the next target for bears will be support at 1.3709. However if bulls manage to regain control on the market, then resistance at 1.4289 may come into play. Source: xStation5
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