Following Wednesday’s heavy losses, Europe was in rebound mode on Thursday, ahead of what is sure to be another brutal US jobless claims reading.
Despite Brent Crude losing another 1.4%, sending the black stuff to $27.40 per barrel, the FTSE managed a 46 point climb after the bell, just about pushing it back to 5650. That barely takes the edge off yesterday’s ever-spiralling 250 point plunge, but, considering the state of oil, the index can’t really ask for much more.
Over in the Eurozone the gains were slightly beefier. The DAX added 130 points as it stuck its nose across 10400, while the CAC crawled tooth and claw back to 4400 with a 50 point increase.
As for the Dow Jones, it is aiming for a 180 point rise when the bell rings on Wall Street, one that would leave it a few points shy of 23700.
Of course between now and them is the latest US unemployment claims number, one that is expected to see another 5.35 Americans filing for joblessness for the week ending April 11th. That would put the 4-week figure well above 20 million, and cause the country’s unemployment rate to potentially near 15%.
Yet repeatedly the markets have avoided dealing with the unemployment crisis. Be it the initial $2.2 trillion US stimulus package, Trump’s claim of an impending Russia/Saudi Arabia oil deal or last week’s $2.3 trillion loans plan from the Fed, investors have always had a distraction. That, or the hope each record-breaking reading would merely pushed Jerome Powell and co. towards the intervention that finally materialised last Thursday. They may not be so lucky this time out – but what will that actually mean for trading?
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