- Upbeat PMI figures from Europe
- US stocks rose despite potential tax hikes
- Stron macro data from the US economy
European indices finished today's session mostly lower even despite the fact that flash Markit PMI survey showed that the Eurozone private sector activity expanded more than expected in April and at the fastest pace since last July, despite a slowdown in Germany's services activity growth. Also the EU will acquire up to 1.8 billion doses of the Pfizer-BioNTech's COVID-19 vaccine. On the corporate front, car Daimler AG lifted its profit outlook for the current year. Shares of Tod’s rose sharply after LVMH agreed to increase its stake in the company. Dax fell 0.27%, CAC40 lost 0.15% and FTSE 100 finished flat.
US indices rose sharpy and managed to erase the majority of yesterday's losses after upbeat economic data offset mixed earnings reports and the possibility of higher capital gains taxes. Preliminary Markit PMIs for the US pointed to record growth in both manufacturing and services and new home sales reached the highest level since 2006. Meanwhile, news emerged that President Biden is considering raising tax rates to 39.6% for wealthy individuals and companies (earnings above $1 million) in order to pay for social spending. This would be a massive increase given the current capital tax rate is 20%. On the earnings front, American Express posted mixed quarterly figures with disappointing revenue and better than expected earnings. Kimberly-Clark lowered its full-year guidance and Honeywell posted strong quarterly earnings and lifted its full-year profit guidance. Intel's figures topped estimates but stock fell sharply as the company lowered its earnings expectations for the current quarter.
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Create account Try a demo Download mobile app Download mobile appWTI crude rose more than 0.8% and is trading slightly below $62.00 a barrel, while Brent is trading nearly 0.6% higher around $65.80 a barrel as rising coronavirus infections in some parts of Asia including India and Japan capped gains. The combined consumption of diesel and gasoline in India is expected to fell by as much as 20% in April from a month earlier due to renewed restrictions, Bloomberg reported. Elsewhere gold fell 0.40% to $ 1,777.00 / oz, while silver is trading 0.50 % lower, around $ 26.00 / oz amid a slightly weaker dollar and falling Treasury yields.
GBPUSD pair fell sharply this week however buyers managed to halt declines around 1.3850 support which coincides with 50 SMA (green line), 200 SMA (red line) and upward trendline. If current sentiment prevails, another upward impulse towards resistance at 1.3918 may be launched. On the other hand, if sellers manage to break below the aforementioned support zone, then downward move towards support at 1.3750 may accelerate. Source: xStation5
