Market sentiment remains tethered to anxiety about the European Central Bank’s monetary policy decision due on Thursday. Though markets widely expect the ECB to keep rates steady, keenly watched would be the forward guidance, especially on interest rate cuts. European markets are expected to open trading on Thursday on a weak note.
Wall Street had closed on a mixed note on Wednesday amidst strong earning updates, especially from the tech sector. Nasdaq Composite added 0.36 percent to close at 15,481.92 whereas the Dow Jones Industrial Average slipped 0.26 percent to finish trading at 37,806.39.
Strong positive sentiment prevailed in the European bourses on Wednesday amidst strong corporate results and China’s stimulus announcement. The pan-European Stoxx-50 jumped 2.2 percent. Germany’s DAX surged 1.6 percent. France’s CAC 40 rallied 0.9 percent. U.K.’s FTSE 100 gained 0.6 percent. Switzerland’s SMI followed with gains of 0.4 percent.
Current indications from the European stock futures indicate a mixed sentiment. The FTSE 100 Futures (Mar) has declined 0.28 percent whereas the DAX Futures (Mar) is trading 0.12 percent lower. The CAC 40 Futures (Feb) has slipped 0.20 percent. The pan-European Stoxx 50 Futures (Mar) has edged down 0.11 percent. The SMI Futures (Mar) has however gained 0.07 percent.
American stock futures indicate mild gains ahead of the GDP data due later in the day. The US 30 (DJIA) is trading 0.25 percent higher, whereas the US500 (S&P 500) is trading 0.08 percent higher.
Asian stock markets are trading on a mostly positive note amidst the surprise action by People’s Bank of China to cut the reserve requirement for banks. China’s Shanghai Composite surged 2.76 percent, followed by Hong Kong’s Hang Seng that rallied 1.9 percent. Australia’s S&P ASX 200 added 0.48 percent whereas DJ New Zealand increased by 0.22 percent. Japan’s Nikkei 225 has edged up 0.08 percent. South Korea’s KOSPI has edged down 0.11 percent whereas India’s Nifty 50 has declined 0.62 percent.
The Dollar Index (DXY), a measure of the U.S. dollar’s strength relative to six currencies, edged up 0.10 percent to 103.34, from the previous close of 103.24. The EUR/USD pair has edged down 0.05 percent to 1.0878 whereas the GBP/USD pair has edged down 0.10 percent to trade at 1.2710.
Gold edged lower amidst anxiety ahead of GDP data from the U.S. and rate decision by the ECB. Gold Futures for February settlement is trading at $2,015.35, down 0.03 percent from the previous close of $2,016.
Crude oil prices rallied amidst a larger-than-expected decline in inventories in the U.S. Brent Crude Futures for March settlement gained 0.49 percent to $80.43 whereas WTI Crude Futures for March settlement added 0.57 percent to $75.52.
Ifo Business Climate reading for January from Germany is seen edging up to 86.7, from 86.4 in the previous month. Also due on Thursday are Business Confidence and Business Climate Indicator for January as well as Unemployment Benefit Claims and Job Seekers data for December from France. U.K. expects the CBI Distributive Trades report as well as the Gfk Consumer Confidence report for January on Thursday. A speech by ECB president later in the day would also be keenly anticipated.
Major earnings updates due from the region on Thursday include Visa, Louis Vuitton, SEB, Sandvik, Epiroc, Comcast, Essity, Christian Dior, Tryg, STMicroelectronics, Givaudan and Hyundai Motor.
Business News
European Markets Brace For ECB Outcome
2024-01-25 06:37:37
