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  |   Market Roundups


Europe Roundup: Euro takes a breather after four-day rising streak, European shares dips, Gold drops 1%,Oil at highest since March on lower U.S. inventories, recovering demand-May 21st 2020

Market Roundup

• Focus on U.S. initial jobless claims data due at 1230 GMT

• French  May Services PMI 29.4, 27.8 forecast, 10.2 previous

• French May Manufacturing PMI  40.3, 36.1 forecast, 31.5 previous

• French May Composite PMI  30.5, 32.0 forecast, 11.1 previous

• German May Composite PMI  31.4, 34.1 forecast, 17.4 previous

• German May Manufacturing PMI   36.8,  39.2 forecast, 34.5 previous

• German May Services PMI  31.4, 26.6 forecast, 16.2 previous

• EU May Services PMI  28.7, 25.0 forecast, 12.0 previous

• EU May Manufacturing PMI  39.5, 38.0 forecast, 33.4 previous    

• EU May Markit Composite PMI 30.5, 25.0 forecast, 13.6 previous    

• UK Manufacturing PMI 40.6, 36.0 forecast, 32.6 previous    

• UK Services PMI 27.8, 25.0 forecast, 13.4 previous    

• UK Composite PMI 28.9, 25.0 forecast,     13.8 previous

• UK May CBI Industrial Trends Orders -62, -59  forecast, -56 previous

Looking Ahead - Events, Other Releases (GMT)
• 12:30 Canada  New Housing Price Index (MoM) 0.3% previous

• 12:30 US Initial Jobless Claims 2,400K forecast, 2,981K previous

• 12:30 US Continuing Jobless Claims 24,765K forecast, 22,833K previous

• 12:30 US Jobless Claims 4-Week Avg     3,616.50K previous

• 12:30 Canada ADP Nonfarm Employment Change-177.3K previous

• 12:30 US May Philadelphia Fed Manufacturing Index  -41.5 forecast, -56.6 previous

• 12:30 US May Philly Fed Employment     -46.7 previous

• 12:30 US May Philly Fed New Orders  -70.9 previous

• 12:30 US May Philly Fed CAPEX Index 12.40 previous

• 12:30 US May Philly Fed Prices Paid  -9.30 previous

• 12:30 US May Philly Fed Business Conditions  43.0 previous

• 13:00 Russia Central Bank Reserves (USD) 562.4B previous

•13:00 Russia April Industrial Production (YoY) -10.0% forecast,0.3% previous

• 13:45 US May Markit Composite PMI  27.0 previous

• 13:45 US Services PMI May 30.0 forecast, 26.7 previous

•13:45 US May Manufacturing PMI  38.0 forecast, 36.1 previous

•14:00 US April Leading Index (MoM)  -5.5% forecast, -6.7% previous

•14:00 US Existing Home Sales (MoM)  -18.9% forecast,-8.5% previous

•14:00 US April Existing Home Sales 4.30M forecast, 5.27M previous

•14:30 US Natural Gas Storage 83B forecast, 103B previous

Looking Ahead - Events, Other Releases (GMT)

•14:00 US FOMC Member Williams Speaks

•17:00 US FOMC Member Clarida Speaks

•18:30 US FOMC Member Brainard Speaks

•18:30 US Fed Chair Powell Speaks


EUR/USD: The euro steadied on Thursday after a four-day rising streak that was fuelled by optimism of a closer fiscal union in Europe fizzled out, with U.S.-China tensions and concerning economic data coming to the fore. France and Germany proposed a 500-billion-euro ($543 billion) recovery fund on Monday. The news lifted the euro from the $1.08 levels where it has been languishing for the last two months and pushed it towards $1.10, though the single currency remains more than 4% away from the 2020 highs of $1.15 levels tested in early March.But on Thursday, the euro took a breather, easing down 0.04% to $1.0974 as stock markets across Europe traded in negative territory. Immediate resistance can be seen at 1.1004 (higher BB), an upside break can trigger rise towards 1.1167 (61.8% fib).On the downside, immediate support is seen at 1.0964(38.2% fib), a break below could take the pair towards 1.0919 (5 DMA).

GBP/USD: Sterling edged lower against dollar on Thursday as a combination of business activity data and the risk of sub-zero interest rates weighed on the pound. IHS Markit’s flash PMI data showed Britain’s economy flattened out a bit this month from its nosedive in April caused by the coronavirus lockdown, but remains in the grip of a severe contraction. A drop in inflation fuelled speculation this week that the Bank of England might cut interest rates below zero to bolster an economy hammered by the coronavirus pandemic. Immediate resistance can be seen at 1.2337 (21 DMA),an upside break can trigger rise towards 1.2391 (30 DMA).On the downside, immediate support is seen at 1.2201 (5 DMA), a break below could take the pair towards 1.2095 (Lower BB).

USD/CHF: The dollar strengthened against the Swiss franc on Thursday as Sino-U.S. tensions and weak economic indicators in Europe increased demand for dollar. Stock markets across Europe opened in negative territory while shortly after the bell, data showed that France's business slump eased not quite as much as expected in May.Shortly after that, an indicator which tracks the manufacturing and services sectors showed that Germany's recession eased in May but also less than anticipated. Immediate resistance can be seen at 0.9661 (30 DMA), an upside break can trigger rise towards 0.9725  (23.6% fib).On the downside, immediate support is seen at 0.9615 (38.2 %fib), a break below could take the pair towards 0.9533 (50 % fib).

USD/JPY: The dollar gained against the Japanese yen Thursday as weak Japanese export data and Sino-U.S. trade worries lifted dollar against Japanese yen. Japan’s exports fell the most since the 2009 global financial crisis in April as the coronavirus pandemic slammed world demand for cars, industrial materials and other goods, likely pushing the world’s third-largest economy deeper into recession. Strong resistance can be seen at 107.80 (38.2 % fib), an upside break can trigger rise towards 108.16 (Higher BB).On the downside, immediate support is seen at 107.57 (30 DMA), a break below could take the pair towards 106.57 (50 % fib).
Equities Recap

European shares fell on Thursday following a strong run this week after the latest business activity data revealed the damaging impact of the coronavirus crisis.

At (GMT 12:05 ),UK's benchmark FTSE 100 was last trading down at 0.43 percent, Germany's Dax was down  by 1.07 percent, France’s CAC finished was down by 0.76 percent.

Commodities Recap

Gold slipped 1% on Thursday, pulling away from this week's 7-1/2 year peak as the dollar strengthened and hopes of a quick economic recovery dented bullion's safe-haven appeal.

Spot gold was down 0.9% at $1,733.90 per ounce at 1106 GMT. U.S. gold futures fell 1% to $1,735.70 per ounce.

Oil rose on Thursday to its highest since March, supported by lower U.S. crude inventories, OPEC-led supply cuts and recovering demand as governments ease restrictions on people’s movements imposed due to the coronavirus crisis.

Brent crude for July rose 54 cents, or 1.5%, at $36.29 per barrel at 1015 GMT. U.S. West Texas Intermediate crude climbed 67 cents, or 2.0%, to $34.16. Both benchmarks are at their highest since March 11.

Treasuries Recap

Italian government 10-year bond yields rose on Thursday from a near six-week low reached this week as nervous investors awaited more detail to emerge from the proposed 500 billion euro ($547.90 billion) European Union recovery fund.

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