Today, investors’ attention is focused on the ECB meeting, US inflation, and the talks between foreign ministers of Russia and U

by JustForex

US stock indices ended Wednesday’s trading with solid growth. Falling prices for oil and other commodities have supported the US stock market. The sharp rise in oil and other commodities has raised fears among investors about further rising inflation and a potential slowdown in economic growth. As the stock market closed yesterday, the Dow Jones index (US30) increased by 2%, the S&P 500 index (US500) added 2.57%, and the NASDAQ technology index (US100) jumped by 3.59%.

The US consumer inflation data will be released today, which could significantly shake the dollar as analysts expect another acceleration of US inflation. If the actual value is worse than expected, the dollar index may strengthen sharply. The Fed is expected to decide to raise interest rates more aggressively next week, although Fed Chairman Jerome Powell said last week that the increase would be 25 basis points. If the actual value is better than expected or meets expectations, the dollar index, on the other hand, may fall, which will have a positive impact on major US stock indices.

Amazon has announced its first share split since the dot-com boom, announcing to investors on Wednesday that they will receive 20 shares for every share (20:1) they currently own. The company’s stock jumped 8% in the after-hours session. The company also said that its board of directors has decided to make a buyback up to $10 billion.

European indices strengthened substantially yesterday, showing the largest growth in two years. Several factors contributed to this. Firstly, investors were attracted by Ukrainian President Volodymyr Zelensky’s interview for the American ABC News, in which he said that he “cooled down” about Ukraine’s accession to NATO and added that he was open to a dialogue on the future of the “DNR” and “LNR.” Secondly, the foreign ministers of Ukraine and Russia will meet in Turkey today. Thirdly, the United Arab Emirates, a member of the Organization of Petroleum Exporting Countries and their allies (OPEC+), supports increasing oil production. All these factors caused a positive mood.

At the closing of the stock exchange, German DAX (DE30) gained 7.92%, French CAC 40 (FR40) added 7.13%, Spanish IBEX 35 (ES35) increased by 4.88%, British FTSE 100 (UK100) jumped by 3.25%. Today, the ECB will hold its monetary policy meeting to decide the interest rate. Analysts believe that amid the war in Ukraine, the ECB will not change anything in monetary policy. Still, investors should closely follow Christine Lagarde’s speech hints at a press conference.

After it became known yesterday that the United Arab Emirates would support an increase in oil production amid possible supply problems from Russia, oil prices fell the most in almost two years.

On Thursday, Asian stocks rose, following rising on Wall Street, as planned diplomatic talks between Russia and Ukraine have supported investor sentiment. Japan’s Nikkei 225 (JP225) gained 3.94%, Hong Kong’s Hang Seng (HK50) added 1.27%, and Australia’s S&P/ASX 200 (AU200) rose 1.10%. Japan’s Producer Price Index, which measures inflation between factories, rose to 9.3% from 8.9% in annual terms. This is the first sign that consumer inflation will also begin to increase.

Main market quotes:

S&P 500 (F) (US500) 4,277.88 +107.18 (+2.57%)

Dow Jones (US30) 33,286.25 +653.61 (+2.00%)

DAX (DE40) 13,847.93 +1,016.42 (+7.92%)

FTSE 100 (UK100) 7,190.72 +226.61 (+3.25%)

USD Index 97.98 -1.08 (-1.09%)

• – Japan Producer Price Index (m/m) at 01:50 (GMT+2);
• – Eurozone ECB Monetary Policy Statement at 14:45 (GMT+2);
• – Eurozone ECB Interest Rate Decision at 14:45 (GMT+2);
• – Eurozone ECB Press Conference at 15:30 (GMT+2);
• – US Consumer Price Index (m/m) at 15:30 (GMT+2);
• – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
• – US Natural Gas Storage (w/w) at 17:30 (GMT+2).

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.