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Daily Analysis: Stocks Go Nowhere as Central Banks Leave Policies Unchanged

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Daily Analysis: Stocks Go Nowhere as Central Banks Leave Policies Unchanged


This article was posted on Thursday, 15:53, UTC.

Thursday Market Recap

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Asset Current Value Daily Change
S&P 500 2389 0.05%
DAX 12470 -0.08%
WTI Crude Oil 48.56 -2.12%
GOLD 1263.00 -0.06%
Bitcoin 1318 2.18%
EUR/USD 1.0859 -0.28%


The broad plans of the much-awaited US tax-reform were revealed yesterday, and “the biggest tax-cut in human history” disappointed investors somewhat, pushing the major indices slightly lower. The Bank of Japan and the European Central Bank have been in the center of attention so far today, as both central banks released their monetary statements. The BOJ left its policies unchanged, but cut its inflation forecast, boosting Japanese equities and hurting the Yen. The ECB also lowered its inflation outlook, while the bank’s president Mario Draghi was optimistic about the prospects of the Eurozone. The Euro is trading lower following the mixed announcements.

Oil got another today, as the WTI contract fell below the $49 per barrel level after yesterday’s bounce. Gold is still holding up above its crucial support levels, despite the recent risk-on rally and the weakness in other safe-haven assets. Commodity-related currencies are under pressure again, while the Great British Pound is drifting higher, hitting another multi-month high against its major peers. The Canadian Dollar remains volatile, as the surprise lumber-tax by the US poses a risk to the trade relations between the two countries.

Gold futures, 4-Hour Chart Analysis

Bitcoin is up again today, following an overnight correction, as the cryptocurrency is trading at new all-time highs for the first time since the correction caused by hard-fork fears this spring.  Ethereum, Ethereum Classic, Monero, and NEM are up by double digits today, as US authorities are weighing the possibilities of an Ether-based ETF. Dash is also participating in the broad rally, pushing above the $75 level. Litecoin entered a correction today, as it failed to break-out above its weekend highs. Ripple is still well within its trading range, with activity still being low in the coin.

Monero, 4-Hour Chart Analysis

Technical Picture

The NASDAQ continues to lead the way higher despite the negative economic numbers (new jobless claims and core durable orders) that were released today in the US. The tech index hit yet another all-time high today, as the other major benchmarks are struggling to gain traction. With all the tech giants scheduled to release their earnings reports in the next couple of weeks, volatility is expected to increase (look for Google’s report today after the closing bell).  The index might re-test the break-out level at 5475, as the bearish cross on the MACD suggests a correction or at least a consolidation in the coming days.

NASDAQ 100 Futures, 4-Hour Chart Analysis

Key Economic Releases on Thursday

Time, CET Country Release Actual Expected Previous
5:50 JAPAN Monetary Policy Satement
9:00 EUROZONE Base Interest Rate 0 0 0
14:30 EUROZONE Monetary Policy Satement
14:30 US Core Durable Goods -0.20% 0.40% 0.50%
14:30 US Initial Jobless Claims (weekly) 257,000 241,000 244,000


Key Economic Releases on Friday

Time, CET Country Release Expected Previous
10:30 UK Prelim GDP 0.40% 0.60%
8:00 GERMANY Retail Sales 0.10% 1.80%
14:30 US Advance GDP 1.30% 2.10%
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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.

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