Thursday market minutes
- Global stocks are slowing as the Fed, but rates remain unchanged, but present a grim picture of the US recovery plagued by the coronovirus epidemic.
- Fed Chair Powell says the FOMC is “not even thinking about raising rates”, while recent consumer and jobs data suggest the recovery is stalling.
- GDP data for the three months ending in June represent the largest collapse on record, with the Commerce Department forecasting a yearly contraction of -32.9%.
- German’s seasonally adjusted Q2 GDP liaison -10.1%, the worst record for Europe’s largest economy.
- The dollar rebels from a recent two-year low against a basket of its global peers, but the 10-year Treasury note is 0.551% above GDP data and weekly jobless claims, expected to rise to 1.45 million at the end of the week is. On 25 July.
- Tech giants report quarterly earnings after the closing of Apple, Facebook, Google and Amazon Trading, exactly one day after MPs on Capitol Hill faced pointed opposition questions.
- US equity futures suggest weak openings on Wall Street before earnings from Eli Lilly, Procter & Gamble, Comcast, UPS, MasterCard and Kellogg prior to the start of trading.
US equity futures declined on Thursday, while the dollar rebounded from its two-year low and gold remained near its recent record high as investors hung for a significant range of technical income and economic data that Can reduce Federal Reserve momentum and anxiety. Depth of coronovirus recovery of the nation.
Fed Chairman Jerome Powell on Wednesday placed the global coronavirus epidemic at the center of his monetary policy framework, telling reporters through a video conference in Washington that he was “not even thinking about boosting jobs”. Growth and slowing were amid rising signs of consumer confidence.
The stock was brought under further pressure by a tweet from President Donald Trump, who suggested delaying the 2020 election after claiming, without any evidence, that mail-in voting would lead to a fraudulent result.
The Fed’s Open Markets Committee said on Wednesday, “The path of the economy will depend heavily on the course of the virus.”
Powell said that “more fiscal policy would be needed both” to ensure full support, stating that the United States “has entered a new phase containing the virus, which is necessary to protect both of us.” is. Health and our economy. ”
US GDP contracted at an annualized rate of -32.9% in the second quarter, the Commerce Department estimated, marginally better than the -34.1% forecast but still the worst reading on record. The Commerce Department said consumer spending declined by 34.6%, while exports fell by 64.1%.
This came with an increase in weekly jobless claims, peaking at 1.434 million for the week ending July 25, offering further evidence that the recent coronovirus resurgence is taking its toll on the world’s largest economy .
The effect seems to be that it may well occur in the autumn months, with US cases rising to 4.51 million and 153,000 deaths by Wednesday evening.
With huge technical earnings from Apple (AAPL) – Get Report, Facebook (American Plan) – Get Report, Google (GOOGL) – Get Report And amazon (AMZN) – Get Report Following the end of today’s trading, and weaker-than-expected second quarter reports from European bluechips such as Volkswagen and Royal Dutch Shell, global stocks set Wall Street up for a weaker session than any in the overnight session Struggled to find momentum. Start a trading session.
The Dow Jones Industrial Average-linked futures contracts suggest a 340 point slump for the 30-stock benchmark, while the S&P 500 price, the largest measure of US stocks, has a 37 point stretchback.
The US Dollar Index, which monitors the greenback against a basket of six global currencies, was marginally higher on the session, but still touched its lowest level since May 2018, after the Fed’s statement yesterday after. Meanwhile the yield of the benchmark 10-year Treasury note slipped to 0.551% in European trade.
The weakness of the dollar gave some support to global oil prices, but the biggest weekly decline in domestic crude oil stocks by the Department of Energy – 10.6 million barrels – was on Thursday, despite the fall in market demand since December of last year. doing.
The WTI contract for September delivery, the US benchmark, was changing hands at 75 centimeters lower than their Wednesday pass in New York and $ 40.852 a barrel in the initial European deal, while the Brent contract for September, the global benchmark, was $ 43.08 to $ 68. Centimeters less were seen. Barrel.
European stocks were also last, due to weak-to-low earnings on the busiest reporting day of the year, with the Stokes 600 falling 1.7%, Germany’s Dax performance index falling 3% after the biggest quarterly economic downturn. – 10.1% – On record. Britain’s FTSE 100% was down 2% by mid-day in London.
Overnight in Asia, US-China tensions kept pressure on regional stocks, which were little changed for the session despite gains in South Korea and Australia, with investors troubled by a new flare-up of coronovirus infections, including Hong Kong and the region , Tokyo, where Nikkei 225 slipped 0.26% to close at 22,339.23 points.