U.S. Jobless Claims Fall, as Stocks Consolidate
Although initial jobless claims once again fell last week, news of an increase in layoffs contributed to today’s market uncertainty.
Claims fell to 1.186 million for the week ending 2nd August, which was the lowest tally since mid-March.
However, it was reported that layoffs rose by 54% in July as COVID-19 cases once again climbed. This along with reports of government stimulus slowing, made it difficult for employers to retain workers.
Both the Dow and S&P 500 had little movement, with mid-day gains of 0.62% and 0.50% respectively.
FTSE 100 falls as BoE Expects Delayed Economic Recovery
As many had thought, the Bank of England opted to keep rates unchanged. However, it was their economic outlook which moved markets.
The FTSE 100 fell to its lowest level this week as the Bank of England forecasted a slower-than-expected rebound from the COVID-19 pandemic.
Although suggesting that it had the tools required to support the British economy during the pandemic, it stated that we may not return to pre-pandemic levels until the end of 2021.
Nintendo Profits Rise by Over 400%
Nintendo today smashed all market expectations as the company released its Q2 earnings report.
The game maker revealed profits rose by 428%, benefiting from increased consumer demand due to the coronavirus lockdown.
Operating profits came in at 144.7 billion yen, an increase from 27.4 billion yen during the same period last year.
Quote of the day: “I learned early that there is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again. I’ve never forgotten that.”Jesse Livermore
BTCUSD: Bitcoin today rose by close to $500 to easily win the title “Bull off the day”. This came and markets mainly consolidated today ahead of tomorrow’s NFP release.
UK100 (futures): News from the Bank of England was the cause of the FTSE slipping today. The index fell to a weekly low as the BoE warned of a slow economic recovery.