Hong Kong and Chinese stocks fell as the liquidity operations of the Chinese central bank signaled that it is trying to constrain credit growth. US stock futures fell following the Nasdaq index. The S&P 500 lost just over 20 pips, which is a marginal decline and is showing an upward trend in the European session on Thursday. In the US, banks’ stocks rose on the back of unexpectedly high earnings during the group reporting. European contracts lost their ground.
The dollar continued to decline for the fourth session in a row, while the benchmark 10-year Treasuries yield stabilized around 1.63%.
As stocks are oscillating around record levels, traders are monitoring the earnings season for additional catalysts for growth. Expectations of a strong rebound in earnings supported the indices, setting high levels from the beginning of reporting. But while total government expenditure and central bank stimulus measures are supporting the economic recovery, investors are keeping a close eye on any setbacks associated with soaring Covid-19 cases and vaccine program problems around the world.
Oil has demonstrated high volatility. Brent crude rose to $66.60 p/b, while WTI crude rose reached $63. US oil decrease in stocks coupled with hopes for global economic growth is supporting the demand for oil futures contracts.
Main market quotes:
- S&P 500 (F) 4,124.66 −16.93 (-0.41%)
- Dow Jones 33,730.89 +53.62 (+0.16%)
- DAX 15,246.59 +37.44 (+0.25%)
- FTSE 100 6,955.43 +15.85 (+0.23%)
- USD Index 91.578 -0.094 (-0.10%)
- Philadelphia Fed Manufacturing Index (Apr) at 15:30 (GMT+3);
- US Retail Sales (m/m) (Mar) at 15:30 (GMT+3).