Daily Analysis: Pound and Stocks Tank as Bank of England Warns of Brexit Risks
Thursday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||47.88||1.16%|
The Bank of England was in the center of attention today, as the central bank held its scheduled monetary meeting with the ongoing Brexit process in focus. BOE governor Carney revealed that the bank has no plans for a “disorderly” Brexit, while warning of the negative economic impacts, and that together with some bearish economic releases put pressure on the Pound. Stock markets are broadly lower so far, following some worse than expected earnings reports from Europe. US indices are the weakest link globally today, as the S&P 500 is still suspiciously lagging its international peers despite the NASDAQ’s recent rally.
Commodities continued to stabilize with oil leading the way after yesterday’s favorable US inventory data. WTI Crude is back above $48 per barrel, although the OPEC warned of further supply pressures on the market. Industrial metals are also higher thanks to the rebound in China. Gold remains under pressure, despite the slightly negative sentiment and the bounce in the Yen, with the $1220 level still being in focus.
The cryptocurrency market settled down today, although Litecoin remains active after yesterday’s wild moves. LTC is trading 10% lower but still above the $30 level. Bitcoin is rallying again posting a marginal new high during the session. Ripple, NEM, Ethereum Classic, Monero, and Dash are little changed while Ethereum is edging higher. The total capitalization of the coin market is above $53 billion thank to the strength of BTC, with the Asian session giving yet another boost to the currency.
Bitcoin, 4-Hour Chart Analysis
The S&P 500 started today’s session with a quick break lower, as the internal weakness translated into bearish price action after a period of “levitation”. The rising short-term trendline is already in play as the benchmark exited the previous holding pattern. The 2377.50 support is the next level of interest while the 2350-2355 zone serves as the line-in-the-sand support for the long-term bullish trend. The NASDAQ and the main European indices are following the S&P lower, so far, as volatility spiked higher in early trading.
S&P 500, 4-Hour Chart Analysis
Key Economic Releases on Thursday
|13:00||UK||Official Bank Rate||0.25%||0.25%||0.25%|
|14:30||US||Initial Jobless Claims||236,000||245,000||238,000|
Key Economic Releases on Friday
|14:30||US||Retail Sales (monthly)||0.60%||-0.20%|
|14:30||US||Core Retail Sales||0.50%||0.00%|
|16:00||US||UOM Consumer Sentiment||97.0||97.0|