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16:12
Euro on the way to stop the monthly dollar loss cycle
The European single currency continues to appreciate in currency markets on the day the European Central Bank announced measures that make it easier for banks to finance themselves so that they can provide liquidity to the economy.
The euro appreciated 0.27% to $ 1.0902 to trade highs of April 16 against the US currency.
But despite this appreciation, the European currency has accumulated a loss of almost 0.5% against the dollar in the week, the second consecutive year that the single currency has lost ground against the US currency.
Therefore, the euro is now heading towards the end of April with a devaluation of around 0.75% against the dollar, after closing March with a slight appreciation (+ 0.05%) against the currency. The world’s largest economy.
In turn, the dollar has depreciated for five consecutive days in the Bloomberg index, which measures the performance of the US currency against a basket made up of the main world currencies. The dollar has risen for two straight weeks on this index and is on its way to the third monthly cycle to gain value.
The pound, on the other hand, adds at this stage an appreciation of 2.43% against the euro during the month of April, this after two consecutive months losing against the euro zone currency. The economies of the euro bloc contracted 3.8% in the first three months of this year, the biggest drop since the record.
The economic effects caused by the new coronavirus pandemic and the enormous volatility observed in the markets, especially in a month in which oil registered historical losses, ends up being reflected in the strengthening of the value of the dollar as the reference currency.
15:02
New applications for unemployment benefits in the United States penalize scholarships
The Dow Jones continues yielding 1.24% to 24,327.25 points and Standard & Poor’s 500 loses 0.90% to 2,913.06 points.
For its part, the Nasdaq technology compound fell 0.28% to stand at 8,889.65 points.
The indexes are mainly boosted by the announcement that an additional 3.8 million Americans applied for unemployment benefits last week, raising the application for this state aid to 30.3 million in the past six weeks.
In addition, central banks did not provide the desired new stimulus, after yesterday the Fed and today the ECB maintained key rates.
“Investors do not like unemployment. And they do not like inaction by central banks. That is why the stock markets are falling,” CNN stresses.
09:53
Europe turns green shaken by disappointing economic data
European stock exchanges started the day on a positive note, but quickly turned, for the most part, to red.
The index that adds to the 600 largest European companies, the Stoxx600, falls 0.19% to 346.40 points. Spain, Germany, the United Kingdom, the Netherlands and Italy line up on breaks. Lisbon square, however, still clings to the green.
Although companies like Facebook and Tesla yesterday showed surprisingly positive results, and Gilead Sciences announced that one of their medications is resulting in an acceleration of the coronavirus recovery, investors are unaware of these sources of hope and are leaving. engage in the pessimism of disappointing economic data.
Two of the largest European economies, the French and the Spanish, suffered an economic contraction of more than 5% in the first three months of this year, the largest on record. This is just one day after the United States revealed the largest contraction in the economy since 2008 and the first in six years, with a 4.8% drop in gross domestic product (GDP).
In addition, there are also companies to remember the difficulties imposed by the pandemic. Royal Dutch Shell cut the dividend for the first time since World War II, and Société Générale experienced a surprising drop in earnings.
09:37
Portugal’s interest rate falls on the sixth day
Interest rates on Portuguese sovereign bonds are falling for the sixth consecutive day, and investors are confident that the ECB will remain in the market to avoid a worsening of returns on the secondary market.
The 10-year government bond rate yields 1.3 basis points, at 0.88%, accumulating a reduction of almost 40 basis points in the space of six sessions. On German debt, the yield also fell 1.3 basis points to -0.51%.
09:32
Oil beats strong gains with two reasons to smile
Oil is again showing significant gains at a time when fear of oversupply diminishes.
The London-listed Brent barrel is up 9.27% at $ 24.63 while the West Texas Intermediate counterpart, which is listed in New York, adds 13.61% at $ 17.11. Yesterday they advanced around 10% and 22%, respectively.
Commodity prices are encouraging when there are signs that a demand-side recovery is starting, now that cars have been driving the streets of China again. On Wednesday, the Energy Information Administration showed a jump in demand and a smaller-than-expected increase in US stocks. At the same time, Russia has already announced that its production will be reduced by a fifth.
According to investment firm Mercuria Energy Group, consulted by Bloomberg, oil has already bottomed out. Still, Vanda Insights cautions that “it is too early to call this a tipping point.”
09:29
The euro rises slightly between central bank meetings
The euro is trading slightly higher as investors analyze the results of yesterday’s Federal Reserve meeting and await today’s European Central Bank meeting.
The European currency is worth 0.06% at $ 1.0879, at a time when investors are also familiar with Eurozone GDP and unemployment data in the US. USA
The United States Federal Reserve decided not to change the federal funds rate, which therefore remained in the range between 0% and 0.25%. But he emphasized that the covid-19 poses great risks in the “medium term” and, therefore, will help the economy to use the vast tools at its disposal.
The ECB publishes the conclusions of Thursday’s monetary policy meeting. The European Central Bank has been taking action in response to the impacts of covid-19, with an € 750 billion asset purchase program underway, only because of the emergency with the new coronavirus, which joins the program that It was already in place. And this is where the market sees more possibilities for action, with the increase of the maximum limit for these purchases by another 250 billion. In addition, it made liquidity funds available to banks at a lower cost, accepting more guarantees.
7:55
April earns thousands: the month should end with the biggest increase since 2009
Futures in the United States and Europe indicate gains, after the session in Asia also closed higher. Global stocks are preparing to end April with the most positive balance since 2009.
The MSCI All-Country World Index increased about 11% during April, the highest cumulative balance in 11 years. Japanese Topix rose 1% and Nikkei 2.14%. Indices in Hong Kong and South Korea did not open on a holiday. MSCI Asia-Pacific advanced 1.3% and in Australia earnings exceeded 2%.
Optimism is based on the hope that a treatment for coronavirus will be found and, at the same time, the results of some companies are positive.
On Thursday, the S & P500 played for up to seven weeks after Gilead Sciences announced that one of its medications helps covid-19 patients recover more quickly.
“What is guiding the markets at this stage is the news of possible treatments and vaccines, because lately it is what changes the game,” says Principal Global Investors, quoted by Bloomberg.
“This is what will boost the markets, in addition to any news about the removal of the isolation before,” adds the same investment house.
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