Top 5 Things to Know in the Market on Thursday, September 10 By


© Reuters.

By Geoffrey Smith – European Central Bank meets under increasing pressure to stop the euro from rising against the dollar. The weekly jobless claims in the United States are due, as is a GOP-controlled Senate vote on a lean stimulus package. Stocks hold steady after Wednesday’s rebound, but China’s stocks are selling as the regulator clamps down on speculation. Oil prices are falling again after US inventory data has fueled fears of falling demand. Here’s what you need to know about the financial markets on Thursday, September 10.

1. The ECB reacts to the strength of the euro

The European Central Bank is meeting for the first time since the Federal Reserve changed its monetary policy doctrine to essentially increase its tolerance for inflation. The dollar has weakened since then, pushing its highest for more than two years, with many analysts predicting a further rally to $ 1.25 in the coming months.

The Financial Times reported on Thursday that President Christine Lagarde would include a phrase about the exchange rate in the opening statement at her 8:30 a.m.ET (12:30 GMT) press conference, suggesting she will attempt to lower the exchange rate. euro.

His success may hinge on how well his words match the ECB’s new growth and inflation forecasts. The ECB already expects to underachieve its CPI target through 2022, and any downward revision to this forecast will be tantamount to admitting that more stimulus is needed, even if the final reading of GDP in the second quarter suggested that the eurozone economy had shrunk less than expected.

2. The unemployed claim to post a further decline

In the United States, weekly jobless claims data will be released at 8:30 a.m. ET. These have had a waning impact on financial markets in recent weeks, with little change evident in the narrative of a slowly recovering labor market.

Wednesday’s Bureau of Labor Statistics vacancies survey found a much larger increase in job vacancies than expected, suggesting there is room for a positive surprise. The consensus forecast is expected to have fallen to 848,000 from 881,000 last week, while – which comes with a one-week lag – is expected to fall to 12.925 million from 13.354 million.

As always, it will be important to look past these headlines to see the total number of people claiming unemployment benefits, which remained above 29 million in last week’s report.

3. Stocks should open lower; Watched Senate stimulus bill

US stocks are expected to open lower, as the pace of selling picks up from Wednesday’s rebound.

At 6:35 a.m.ET (10:35 a.m. GMT), the contract was down 160 points or 0.6% and a little less.

, where volatility has been highest in recent sessions, was down 0.5%.

In addition to the jobless claims figures, there will be producer price inflation data for August, as well as earnings reports after the closing bell from Oracle (NYSE :), the bike maker. Exercise Peloton (NASDAQ 🙂 and Chewy Animal Food Group (NYSE :).

Participants will also keep an eye on the Senate vote on a lean stimulus package.

4. Chinese regulator steps in to end retail speculation

Chinese tech stocks, which also saw a rebound among retail investors over the summer, continued to decline after the Securities Regulatory Commission decided to limit “speculative” trading.

The index, where many of the country’s hottest startups are listed, fell 1.6% and is now down 10% since the start of the month.

More than 300 start-ups fell more than 10% on Thursday, including 50 companies reaching their downside trading limits, Reuters reported.

Korea’s index, on the other hand, jumped 1.7% to a new all-time high on the perception that its companies will be among the biggest beneficiaries of U.S. measures to exclude Huawei from global telecommunications infrastructure.

5. Oil goes down again after inventory data

Oil prices abandoned Wednesday’s gains amid lingering concerns about global oversupply or, more specifically, a demand deficit as the global economy struggles to return to pre-pandemic activity levels .

The mood was soured by the American Petroleum Institute’s weekly report which showed US crude rose nearly 3 million barrels last week, instead of falling as expected. Government data is due at 10:30 a.m. ET.

As of 6:30 a.m. ET, futures were down 1.5% to $ 37.47 per barrel, while futures were down 1.2% to $ 40.30 per barrel.


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