Overview
- Stocks climb on positive earnings
- Euro remains subdued after ECB announcement
- Oil trades near 2-year high
European Markets
The euro has dropped 0.45% today after the European Central Bank said it would reduce but extend its stimulus programme. This pushed back the probability of a rate hike to 2019. The euro initially fell 1.8% after the announcement.
Yesterday, the euro was trading at $1.1830 per dollar, but has since fallen to trade at $1.1598.
European stocks are mixed after US earnings surpassed expectations. Germany’s DAX 30 is 0.6% higher, trading at its highest point ever! While France’s CAC 40 is 0.63% stronger, breaking the $5500 mark for the first time since January 2008. The FTSE MIB is 0.2% lower and Spain’s IBEX 35 is 1.2% weaker.
Sterling dipped lower as concerns over the progress of Brexit negotiations intensified.
The weaker pound helped to elevate the FTSE 100, trading 0.18% higher.
US Markets
The dollar has marched to a three-month high against major currency pairs. The advance GDP data showed third quarter expansion surpassed expectations, at 3%, which helped to support the greenback.
The prospect of a more hawkish Federal Reserve chair and a US tax haul has sent US equities higher. Additionally, robust earnings supported a US stock rally, with Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) marching higher and Microsoft (NASDAQ:MSFT) hit the highest point since 1999 overnight.
Commodity Markets
Oil gave up some of it gains on Friday after rallying sharply overnight.
Crude oil is 0.45% lower, although trading at the highest point since April. Meanwhile, Brent oil is at 59.37 dollars, a level not hit since July 2015.
Gold is 0.08% lower, trading near a three-week low thanks to the stronger dollar.