Thursday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||45.67||-0.07%|
Financial markets turned volatile today after a period of low volatility, as the “Super-Thursday” of the week arrived, with the European Central Bank’s monetary meeting, the British snap election, and the hearing of ex-FBI Director Comey. European stocks are higher after the dovish ECB-statement that pushed the Euro lower. The central bank slashed inflation expectations for the Eurozone, in line with yesterday’s rumours, but the Euro’s losses are fairly limited so far. US equities are virtually unchanged despite the choppy price action, with the major indices still hovering around their all-time highs.
Gold entered a correction after its strong recent rally, and it got hit hard in early US trading, after rebounding off the $1300 level once again this week. Oil is slightly higher after yesterday’s massacre, trading near the $46 per barrel level in very volatile fashion. The Qatar situation hasn’t gotten any better, with Iran and Turkey offering help for the country, making the “front-lines” in the crisis even clearer. With the OPEC-deal now looking more fragile than ever, crude oil might remain under pressure in the coming weeks.
Gold, 4-Hour Chart Analysis
Currency markets are dominated by the moves of the Euro, while the Great British Pound is also active on the day of the referendum, as it is also down against the rebounding Dollar. The Yen followed gold lower although it’s still trading near the 110 level on in the USD pair. Industrial commodities decoupled from oil, as they jumped higher with the help of the Chinese stock market that reacted well to the worse than expected trade balance data.
The US financial sector has been one of the worst performing segments during the recent rally in global stocks, but today it’s finally showing some relative strength, although it’s still well below the prior highs with several strong resistance zones ahead. A break-out from the current short-term consolidation pattern could set up a move back to the $25 level. Investors are expecting a rate hike next from the Federal Reserve next week, and an optimistic Fed statement could boost the sector, as increasing rates would help profitability.
XLF (US Financial Sector ETF), 4-Hour Chart Analysis
Key Economic Releases on Thursday
|1:50||JAPAN||Final GDP Growth||0.30%||0.60%||0.50%|
|3:30||AUSTRALIA||Trade Balance||0.56 bill||1.99 bill||3.11 bill|
|4:00||CHINA||Trade Balance||282 bill||336 bill||262 bill|
|14:30||EUROZONE||ECB Interest Rate Decision||0||0||0|
|14:30||EUROZONE||ECB Monetary Statement||–||–||–|
|14:30||US||Initial Jobless Claims||245,000||241,000||248,000|
Key Economic Releases on Friday
|10:30||UK||Goods Trade Balance||-12.0 bill||-13.4 bill|