Stocks rally as US Jobless Claims Decline
Since peaking at a record 6.867 million in late March weekly initial jobless claims have decreased for the eighth straight week The total number of people receiving benefits shrank for the first time during the coronavirus pandemic in a sign people are starting to return to work, even as 2.123 million more Americans filed for Government support during the week ending May 23.
The S&P gained close to 1%, as the current four day run pushed US stocks to a 12-week high. As the US moves to reopen its economy, some recent economic data points have been better than many investors feared.
UK Drugmakers lead FTSE Rally
For a second day running the FTSE 100 rallied by 1.21% as talks of a vaccine continue to drive market optimism. Drugmakers AstraZeneca and GlaxoSmithKline (GSK) led the rally on Thursday as it was announced that they will soon be trialing their respective vaccines. With GSK laying out their plans to produce close to a billion doses of vaccine efficacy boosters by next year.
The FTSE as a result now trades at a three month high heading into June, after going up to as high as 6,300 on Thursday.
€750 billion Recovery Fund continues to boost EU markets
The sun has both literally and metaphorically been shining in Europe this week. This comes as the €750 billion fund announced by the EU to support the region’s virus-hit economies continues to ease tensions in the market.
Heavily impacted nations like Spain, are looking for a speedy finalisation of the deal, with Finance minister Arancha Gonzalez Laya stating, “We have to be sober and act quickly.”
Europe’s largest index the DAX rallied to 11,820 on Thursday, which was the highest level since February.
Bitcoin: Another day and another $300 move in Bitcoin. As we noted yesterday, Bitcoin currently trades in a range where bulls have been known to frequent. The question is what next, for the largest digital currency?
USDJPY: After hitting the 107.878 resistance level on Thursday, USDJPY fell to a low of 107.595. After this drop, the pair began to consolidate at that floor, and now trades at 107.669. Will this break the floor or head back to resistance tomorrow?
Quote of the day:
“The market can stay irrational longer than you can stay solvent”John Maynard Keynes