Market Analytics and Considerations
Key Notes
European equity markets are anticipated to start down on Thursday, following the overnight decline on Wall Street, as concerns over a sharp slowdown this year were sparked by bad economic indicators.
The CAC 40 futures in France dropped 0.4%, the FTSE 100 futures in the UK sank 0.4%, as well as the DAX futures contract in Germany was 0.5percentage points weaker at 02:00 ET (07:00 GMT).
After dismal U.S. production, retail sales, and producer price data were published on Wednesday, the blue chip Dow Jones Industrial Average finished day when almost 600 pts, or 1.8%, down. These statistics revealed that the U.S. economy, the key driver of the international economy, was deteriorating.
Stock prices have lately increased as a result of traders’ expectations that perhaps the Federal Reserve and the European Central Bank won’t ought to increase interest rates as swiftly as they did last year as result of lower inflation.
Nevertheless, it appears that the expansion of the biggest economy in the world has already been greatly affected by these rate rises.
The ECB publishes the minutes of its most recent policy-setting meeting, and President Christine Lagarde is scheduled to address later in the day. Nevertheless, there’s not much in the way of European economic figures expected for publication on Thursday.
Fears of a recession this year were increased by statistics published on Wednesday indicating a steep drop in U.S. retail sales and industrial output.
The American Petroleum Institute also noted that the U.S. oil stockpiles increased by a sizable 7.6 million barrels the other week. If indeed the official numbers from Energy Information Administration later this session are compatible with all this, it would mark the second week in succession with significant inventory rises.
U.S. oil futures were trading 1.1percentage points down at $78.89 a barrel by 2:00 ET, whereas the Brent price was off 0.9percentage points at $84.23.
In addition, gold futures gained 0.2% to $1,910.75/oz, and EUR/USD just slightly climbed to 1.0796.
