Here are the top five things you need to know in financial markets on Thursday, April 21:
1. With no ECB move expected, markets will focus on Draghi
No further measures are expected to be announced in the European Central Bank’s (ECB) monetary policy decision at 12:45GMT, or 8:45AM GMT, which will place the focus on the press conference with president Mario Draghi at 13:30GMT, or 9:30AM ET.
As markets were discounting further easing in the future with the largest probability on the September 8 meeting, investor will listen to Draghi for hints on the current policy stance and any clues to the timing of additional measures.
EUR/USD traded flat in anticipation of the event.
2. Oil gains as investors weigh supply forecasts
The International Energy Agency (IEA) said that 2016 would see the biggest fall in non-OPEC production in a generation, helping rebalance a market that has been dogged by oversupply.
However, oil producers weighed in on black gold with comments on production increases.
Russia's energy minister said it might push oil production to historic highs of over 12 million barrels per day (bpd), while Iran reiterated its intention reach its pre-sanction output of 4 million bpd as soon as possible.
Oil was seeing volatile trade throughout the session, passing back and forth between declines and gains U.S. crude oil futures rose 0.41% to $44.46 at 10:01AM GMT, or 6:01AM ET, while Brent oil traded up 0.55% to $46.05.
3. U.K. retail sales disappoint; pound recovers after initial drop
In discouraging news for the British economy, U.K. retail sales slumped by 1.3% in March, much worse than the expected decline of just 0.1%.
The release initially put downward pressure on the pound which hit an intraday low of $1.4300, but GBP/USD had since recovered and traded up 0.22% to 1.4364 at 10:01AM GMT, or 6:01AM ET.
4. U.S. data and earnings ahead
Stateside investors were focusing on the release of weekly jobless claims and the Philadelphia Fed manufacturing index for April at 12:30GMT or 8:30AM ET.
In less market-moving data, the Chicago Fed national activity for March, the housing price index for February and the Conference Board’s leading index for March will also be released.
In earnings reports, traders will center their attention on GM and two Dow components, The Travelers and Verizon. Visa, Microsoft and Google will report after the market close.
5. Japanese stocks hit 5 ½-week high on BoJ easing bets
After U.S. stocks closed Wednesday’s session at their highest level since last July, the Nikkei 225 jumped 2.70% to close at a five-and-a-half week high as bets that the Bank of Japan (BOJ) would embark on more easing took hold.
Former BoJ deputy governor Kazumasa Iwata suggested that the Japanese central bank would have to lower it’s -0.1% interest rate to -1% in order to conquer deflation.