Ipek Ozkardeskaya
Swissquote Bank Ltd
Equity selloff in Europe and US extended on Thursday. Technology stocks suffered the biggest losses after Microsoft and Meta were hit by a 6% and a 4% decline respectively.
The US futures are slightly in the positive this morning, as Amazon and Intel rallied in the afterhours trading after releasing better-than-expected Q3 results. Today, US’ Big Oil companies will go to the earnings confessional and will certainly post weak numbers due to weak oil and gas prices as did their European peers throughout this week. But, given that the expectations are quite low, beating them is easier.
Speaking of oil, the latest news on the wire suggests that Iran is preparing a response to Israel’s latest attack. As such, US crude cleared the $70pb offers yesterday.
Elsewhere, gilts and sterling gave a delayed reaction to Wednesday’s budget while the US dollar index eased and tested the 200-DMA to the downside despite the stronger-than-expected core PCE figures, the weakening dovish Fed expectations and the rising yields. The yen strengthened after relatively hawkish comments from the Bank of Japan (BoJ) yesterday and the EURUSD rallied past the 200-DMA with the sight of a stronger than expected CPI update.
However, US jobs data and the dollar will ultimately determine whether EUR/USD closes the week above or below this level.
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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