As today is Thursday, investors will keep their eyes on the newest set of unemployment data from the United States. The initial jobless claims are supposed to be under one million for the second week in a row, while the continuing claims are expected to have declined to 15 million.
The markets anticipate this data especially because yesterday’s minutes from the most recent Federal Reserve meeting showed that the central bank is not currently planning on any more stimulus measures. Thus, if the unemployment problem in the United States does not get resolved at the anticipated rate, the economy will suffer.
One important detail from the Fed minutes is that the central bank expects the US government to be more decisive when it comes to stimulus. The thinly-veiled criticism is directed at the two chambers of Congress who remain at odds over a new stimulus bill after nearly four weeks of negotiations.
Still, the lack of new stimulus was good for the dollar, which was able to regain some of its lost positions. The dollar index climbed to 93 and the reserve currency put up resistance against the euro. Gold prices, which are quoted in USD, also decreased below $1,950 as a result.
In terms of the US stock markets, today we expect indices to be on the losing end due to the prolonged lack of stimulus from either the government or the Federal Reserve. In addition, investors are also worried about the relationship between the United States and China, as the US announced an end to its special tax arrangement with Hong Kong earlier.
Major names to watch out for today in stocks are Nvidia and AirBnb, which is set to file for an IPO soon.
Last but not least, Europe today is keeping its eye on Russia. Not only did Russia increase its support for the controversially re-elected President of Belarus (whom the EU does not recognize as legitimate), but this week one of President Putin’s most well-known opponents was poisoned. The situation in both Russia and Belarus is raising more security questions for the EU.
