New post
Riku Tanaka
April 9 17:15

Europe set higher prior to Europe financial stimulus conference

Stock markets in Europe are set to do slightly better on Thursday 
Stock markets in Europe are set to do slightly better on Thursday (Apr 9), as investors on Wall Street do well overnight, but remain wary as negotiations are set to resume regarding the most ideal approach to presenting stimulus to the Eurozone.  

At 2:00 AM ET (0600 GMT), the DAX futures contract in Germany exchanged 0.6% higher. France's CAC 40 futures were up 0.8%, while the FTSE 100 futures contract in the U.K. gained 1.4%.
Europe’s finance officials are getting ready to continue their online meeting to discuss the most ideal path forward in relieving the effect of the coronavirus on the area’s economies.
The teleconference had initially begun on Tuesday (Apr 7), yet dissenting opinions persevered over the obligation conditions. The most divisive issues were the repayment conditions for loans to hard-hit nations like Spain and Italy under the Eurozone bailout fund, the European Stability Mechanism, and whether to provide nations with joint obligation known as 'coronabonds' as part of a more extensive stimulus plan.
The US market had closed significantly higher Wednesday (Apr 8) as the nation’s sentiment that the economy may start winning in its fight against the coronavirus as soon as next week. The Dow Jones Industrial Average rose 3.4%, or 780 points, the S&P 500 was up 3.4%, while the NASDAQ Composite gained 2.6%.
In corporate news, UBS and Credit Suisse, Switzerland's two greatest banks, made an announcement on Thursday (Apr 9) that they had made the decision to partially delay the payment of their 2019 dividend until sometime later this year.
The decision follows criticism of their earlier decision to pay out the dividends in full from Swiss Financial Supervisory Authority (FINMA), despite the coronavirus crisis.
Staying on topic of the financial sector, top officials at HSBC Bank and Standard Chartered Bank had reported that they would renounce their 2020 bonuses and donate a portion of their pay to the battle against the COVID-19 pandemic. This move comes after the two banks said in early April that they would drop their dividends and not repurchase shares.
Recently released financial information indicated that the UK economy had contracted in February, with the monthly GDP report coming in at - 0.1% as opposed to the projected +0.1%. Furthermore, this figure was calculated before the shutdown of the nation's economy.
The most significant information of the day will be the weekly US unemployment claims, which is scheduled for release at 8:30 AM ET (12:30 GMT).
Market analysts predict that cases dialed down somewhat from the previous week's record 6.65 million to a range of around 5.25 million, as per compilations.
Oil costs have pushed higher Thursday (Apr 9), just before a scheduled meeting where OPEC and its partners are expected to concur on a production cut of up to 10 million barrels per day over the course of 90 days. Regardless of predictions, any agreement that is set will likely be contingent that yield falls in the US as well.
At 2:30 AM ET, U.S. crude futures exchanged at 4.2% higher at US$26.14 a barrel. The global benchmark Brent contract rose 1.8% to US$33.40.
In other news, gold futures rose 0.1% to US$1,685.00/oz, while EUR/USD exchanged at 1.0867, remaining unaltered on the day.