Commenting on ECB’s statement on the euro’s recent appreciation and today’s trading Gorilla Trades strategist Ken Berman said:
ECB's Statement On The Euro's Recent Appreciation
The major indices are mixed and flat at midday following a hectic morning session on Wall Street. The European Central Bank’s (ECB) monetary meeting was in the spotlight in early trading, and the band delivered a slightly hawkish message, stating that the ECB is not worried about the euro’s recent appreciation. The ECB’s message and the strong U.S. economic releases of the past few weeks mean that further easing steps by the Fed are not baked in the cake, despite the Central Bank’s historic shift in measuring inflation last month.
In domestic economic news, the weekly jobless claims report provided a bearish surprise, as both new claims and continuing claims came in above the consensus estimate. The latter measure even ticked higher following last week’s huge drop, which added to the pressure on the dollar, which has been struggling in the wake of the ECB’s announcements. The U.S. COVID numbers continue to follow a declining trend, but alarmingly, Europe passed the U.S. in the number of new cases again, re-emerging as a global hotspot alongside India, which reported almost 100,000 new infections, the most on record by any country.
Dow: 27,981, + 40 or 0.1%
S&P 500: 3,407, + 8 or 0.2%
Nasdaq: 11,204, + 62 or 0.6%
Russell 2000: 1,529, + 2 or 0.1%
Market breadth has been in line with the performance of the major indices this morning, with advancing issues outnumbering decliners by a 5-to-4 ratio on the NYSE at midday. 21 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 58 stocks hit new 52-week highs. The major indices have been trading below their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday selling pressure. While the key sectors have been diverging substantially again this morning, stocks are little changed especially compared to the wild swings of the past few sessions, and that could mean that a period of consolidation lies ahead. Stay tuned!
The post ECB Is Not Worried About The Euro’s Recent Appreciation appeared first on ValueWalk.