Daily Analysis: Markets Turn Volatile after ECB-Meeting as UK Election Looms | Hacked: Hacking Finance
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Daily Analysis: Markets Turn Volatile after ECB-Meeting as UK Election Looms

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Daily Analysis: Markets Turn Volatile after ECB-Meeting as UK Election Looms

Introduction

This article was posted on Thursday, 16:26, UTC.

 Thursday Market Recap

 

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Asset Current Value Daily Change
S&P 500 2434 0.06%
DAX 12718 0.37%
WTI Crude Oil 45.67 -0.07%
GOLD 1281.00 -1.01%
Bitcoin 2729 -2.94%
EUR/USD 1.1223 -0.30%

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.

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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.

Technical Picture

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.

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XLF (US Financial Sector ETF), 4-Hour Chart Analysis

Key Economic Releases on Thursday

Time, CET Country Release Actual Expected Previous
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 CANADA NHPI Index 0.80% 0.30% 0.20%
14:30 US Initial Jobless Claims 245,000 241,000 248,000

 

Key Economic Releases on Friday

Time, CET Country Release Expected Previous
3:30 CHINA CPI Index 1.50% 1.20%
3:30 CHINA PPI Index 5.70% 6.40%
10:30 UK Manufacturing Production 0.80% -0.60%
10:30 UK Goods Trade Balance -12.0 bill -13.4 bill
14:30 CANADA Unemployment Rate 6.6% 6.5%
14:30 CANADA Employment Change 11,500 3,200
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Feedback or Requests?

Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Comments
  • user

    AUTHOR RF1508

    Posted on 4:44 pm June 8, 2017.

    Thx Mate. Good analysis

  • View Comments (1) ...
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