by JustForex
Analysts at Morgan Stanley expect that the total balance of the central banks of the G4 countries – the Fed, the Bank of England, the Bank of Japan, the ECB – will increase to $29 trillion by the end of the year, which is almost twice as high as at the end of 2019.
Central banks have launched massive promotional programs earlier this year to limit the impact of business shutdowns implemented to contain the spread of the coronavirus. While recent positive news about vaccines has consolidated hopes for a quick global economic recovery, there is still a long way to go before economic activity reaches pre-pandemic levels. Analysts say that central banks are unlikely to suspend or reduce stimulation in the near future.
The UK will borrow nearly £400 billion to pay for a massive coronavirus strike on its economy this year, treasury secretary Rishi Sunak said, as far as the budget deficit jumps to its highest level since World War II. This points to the fact that the UK economy has been hit hard by the pandemic and will take a long time to recover.
Oil prices have started correcting after its rapid growth. Correction of WTI oil is expected to reach $43.50. WTI oil prices are trading at $45.22.
Market indicators
On Wednesday, the US stocks indices S&P 500 and Dow declined as far as an unexpected increase of jobless claims raised fears of a labor market recovery and reduced risk appetite.
Free Reports:
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
On Wednesday, the Dow Jones index closed down with a decrease by 0.58% to 29.872.47 points, the S&P 500 – by 0.16% to 3.629.65 points, while the Nasdaq rose by 0.48% to 12.094.402.
As a result of the growth of the jobless claims, the dollar index showed a declined dynamic and dropped to 91.92.
The 10-year government bonds yield remains stable at 0.88%.
It is worth paying attention to the news feed for today. At this time, we recommend limiting your risks in positions. It is also worth noting that the US is on holiday, so there is low price volatility expected today.
- – ECB Monetary Policy Meeting Accounts at 13:30 (GMT+2);
- – ECB Monetary Policy Statement at 14:30 (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.
- COT Metals Charts: Speculator bets led by Platinum & Silver May 18, 2024
- COT Bonds Charts: Speculator bets led by the 10-Year & 2-Year Bonds May 18, 2024
- COT Stock Market Charts: Speculator bets led by DowJones-Mini & Russell-Mini May 18, 2024
- COT Soft Commodities Charts: Speculator bets led higher by Corn & Wheat May 18, 2024
- Stoxx Europe 600: What Signs of Investor Exuberance Keep Telling Us May 17, 2024
- Natural gas prices rose to a 4-month high. China released mixed data May 17, 2024
- S&P 500 index hits record high amidst lower inflation May 17, 2024
- Stock indices have hit all-time highs. The Australian labor market is starting to cool down May 16, 2024
- Target Thursdays: USDInd, Soybean & EU50 hit targets! May 16, 2024
- JPY has sharply strengthened May 16, 2024