Markets may be seizing on the fact that policymakers, however reluctantly, are starting to allow stringent lockdowns to ease despite epidemiologists’ warnings.
US jobless data, which are likely to provide more evidence of a deep recession in the world’s biggest economy. Economists forecast U.S. weekly jobless claims of 5.1 million, lifting total filings during the crisis above 20 million.
Donald Trump is due to announce guidelines on re-opening the country’s economy at a press conference later. This move could also boost market sentiment though epidemiology experts warn that easing lockdowns is still risky.
Europe led world stock markets back to higher ground on Thursday. Tentative moves by policymakers to reopen parts of its larger coronavirus-hit economies offset some truly stinking global economic numbers.
Asian equities and U.S. futures had wilted earlier in the day after warnings of a Great Depression-style slump in the world economy.
The IMF is predicting zero growth in Asia this year for the first time in 60 years. Further, markets are expecting China to report on Friday that Q1 GDP contracted for the first time on record.
START TRADINGForex – Policymakers open to lockdowns easing
The dollar gained against currencies considered riskier bets, edging up against the British pound and Australian and New Zealand dollars.
The dollar consolidated its gains against other currencies on Thursday before the release of weekly U.S. jobless data. The greenback edged up 0.1% to 99.774 against a basket of major currencies, after snapping a four-day losing streak the previous day.
The euro resumed its fall versus the dollar, down a quarter of a percent at $1.0882. A half-trillion-euro compromise deal struck between euro zone governments for support through the coronavirus outbreak may prove insufficient.
The yen also fell a quarter of a percent against the dollar. Media reports suggested Japan was preparing to extend a state of emergency beyond major cities to the entire nation.
Oil currencies recovered after Wednesday’s selloff on the stabilizing oil price, with the Canadian dollar up by around 0.1%.
The risk-sensitive Australian dollar fell to a one-week low.
The pound steadied on Thursday, slipping slightly against the dollar and euro. Investors expect an announcement about an extension of Britain’s lockdown imposed to curb the spread of coronavirus.
Versus a stronger dollar, the pound was down 0.2% at $1.2487. It fell slightly against the euro, to 87.20 pence.
Oil prices struggled to rise against the expectation of cratering demand. U.S. crude sat at $20.22 per barrel, just over $1 above an 18-year low hit on Wednesday. Brent crude rose 37 cents or 1.3% in European trade to $28.02 per barrel.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money