Daily Digest: Thursday 9th May
Europe
The focus point of today’s session was the Bank of England’s May monetary policy decision. The committee held the official interest rate at 5.25%, in line with analyst expectations. Forward guidance which for many traders was the focal point of the meet was well received as markets continued to price in rate cuts for the near future. Optimistic analysts have begun to price in BOE cuts as early as the June meet, though these expectations remain weaker than that of the ECB who are now expected to cut on June 6th. Seven of the committee’s nine member voted in favour of holding rates at their current level, while long-term dovish dissenter Swati Dhingra maintained her stance for cuts, alongside Dave Ramsden who had shifted position in favour of cutting 25bps (25 basis points).
The UK’s FTSE 100 (FTSE)managed to continue its winning streak, rising a further 27.3 points (0.33%) to another record close of 8,381.35. Thursday marked a fifth consecutive session of gains, as investors to continue to back London listed equities, a position supported by weakening inflation and the fact that UK listed equities trade at a P/E discount relative to their US counterparts.
European equities exhibited another session of stronger performances, the prevailing directional trend being the same as that of the FTSE. The Pan-European STOXX 600 (€SXXP) rose 1 point (0.19%) to 516.77, while the French CAC (€FCHI) rose 56.24 points (0.69%) to 8,187.65, and the German DAX (€GDAXI) rose 188.2 points (1.02%) to 18,686.60.
Rest of the World
The Nikkei 225 (¥N225) extended yesterday’s declines falling a further 128.39 points (0.34%) to 38,073.98. Trading saw prices move higher before lunch, however, a change in sentiment saw prices rejected around 38,863 falling just over 791 points into the close from its intraday highs. The JPY has continued to concern long investors in the wake of last week’s Japanese MOF interventions. The currency has continued to depreciate against the USD, trading at 155.48 as of 20:08 GMT, despite verbal threats from authorities regarding further intervention.
The Shanghai Stock Exchange Composite Index (¥SSE) managed to erase yesterday’s declines, gaining 25.84 points (0.83%) to 3,154.32. Meanwhile, the Indian Nifty 50 (₹NSEI) moved 345 points (1.55%) lower to 21,957.50.
Commodities
WTI crude prices moved higher for a fourth consecutive session, marking a move to new May highs. As of 21:00 GMT, prices were trading 0.72% higher at $79.56 per barrel.
Gold traders were by no doubt supported by the BOEs rate decision, the commodity broke a poor streak of performances rallying 1.13% to 2,348.50 as of 21:00 GMT.
What To Watch Tomorrow
UK GDP (MoM)
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice