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Overnight on Wall Street: Thursday 22 April 2021

22 April 2021 By Lachlan Meakin

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Equity markets

Wall St bounced back strongly last night after two straight down sessions. It was a rally across the board with blue chips, tech and growth stocks all joining in as dip buyers swooped in.

  • Dow Jones up 316 (0.93%)
  • NASDAQ up 163 (1.19%)
  • S&P 500 up 38 (0.93%)
  • Russell 2000 up 51 (2.35%)

US earnings season continued to beat analysts’ expectations with Verizon (VZ) reporting higher than expected revenue and EPS, tonight AT&T (T), Intel (INTC) and Snap Inc (SNAP) will be reporting first-quarter earnings.

Economic announcements

Tonight, the European Central Bank monetary policy statement is set to be released. With 7 weeks until the next policy statement, the ECB has 2 choices, either to clarify their forward guidance on rates and QE or bide or leave their assessment unchanged while they wait for more evidence of the EU’s economic recovery.

The expectation is that they will leave guidance unchanged, but after last night’s hawkish surprise from the Bank of Canada some analysts believe both options are on the table.

US unemployment claims are also due tonight, where a figure of 607k is the analyst consensus.

FX markets 

US Dollar

After Tuesday’s snap rally the US dollar again reversed as bond yields sank and resumed its downward trend. The US DOLLAR index dropped to the 91 level, now sitting on its 100 day MA support level.

Canadian Dollar

The Canadian dollar surged by the most since June 2020 on the back of unexpectedly hawkish Bank of Canada policy decisions released overnight.

While it was widely expected that rates would remain unchanged and that the BOC would announce a tapering of its monthly asset purchases, the surprise came with a revision of forward guidance. The BOC noted that economic conditions could allow for a potential rate hike in the lower half of 2022, previous guidance had given 2023 as the earliest time frame the BOC expected to be able to raise rates.

USDCAD came under heavy selling pressure and finished the session down 0.9%, erasing earlier session gains.

Friday, 23 April 2021 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0 0 0.065 0.035 0 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 0 0 0


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