Ipek Ozkardeskaya
Swissquote Bank Ltd
Major stock indices across Europe and US were up on Thursday, after a few good-looking earnings across both continents including Hermes, Barclays, Unilever and Renault in Europe and Tesla and UPS in the US, gave a smile to investors after three cloudy sessions.
Overall, the earnings season is going well in the US, less well in Europe. The latter also matches the macroeconomic news where data is strong in the US, and much less in Europe. The EURUSD remains under pressure of economic demise and rising dovish voices at the European Central Bank (ECB) that fuel the thinking that the ECB could, and should consider lowering rates by bigger chunks.
In Japan, the Yen is better bid but the USD/JPY consolidates gains above the 150 level and the risks remain tilted to the upside into the election weekend, which could see the country’s ruling party lose its majority in the lower parliament for the first time since 2009. The latter would be bad for both the yen and the Japanese stocks.
Finally in energy, US crude failed an attempt to clear the 50-DMA. Oil bulls may not be in peak form lately, risks tend to lean to the upside heading into weekends due to the potential for an escalation in the Middle East conflict.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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