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Analysis

Amazon up post-earnings, focus on US’ big Oil and jobs data [Video]

Equity selloff in Europe and US extended on Thursday. Technology stocks suffered the biggest losses after Microsoft and Meta were hit by a 6% and a 4% decline respectively.

The US futures are slightly in the positive this morning, as Amazon and Intel rallied in the afterhours trading after releasing better-than-expected Q3 results. Today, US’ Big Oil companies will go to the earnings confessional and will certainly post weak numbers due to weak oil and gas prices as did their European peers throughout this week. But, given that the expectations are quite low, beating them is easier.

Speaking of oil, the latest news on the wire suggests that Iran is preparing a response to Israel’s latest attack. As such, US crude cleared the $70pb offers yesterday.

Elsewhere, gilts and sterling gave a delayed reaction to Wednesday’s budget while the US dollar index eased and tested the 200-DMA to the downside despite the stronger-than-expected core PCE figures, the weakening dovish Fed expectations and the rising yields. The yen strengthened after relatively hawkish comments from the Bank of Japan (BoJ) yesterday and the EURUSD rallied past the 200-DMA with the sight of a stronger than expected CPI update.

However, US jobs data and the dollar will ultimately determine whether EUR/USD closes the week above or below this level. 

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