The Bank of England is not expected to alter the current stance of its monetary policy
Wall Street stocks closed mixed overnight as investors digested corporate earnings and progress towards economic stimulus. Alphabet beat analyst revenue estimates by $4 billion, and EPS estimates by $6.58, sending its stock 7% higher. Amazon beat analyst revenue estimates by $5.8 billion, and EPS estimates by $6.96. Meanwhile, President Biden reaffirmed his support for a $1.9 trillion stimulus bill that would include direct checks of $1,400.
On the data front, the ADP private-sector jobs report for January showed that the US private sector added 174,000 jobs during the month, well ahead of consensus estimates of 70,000 and rebounding from a loss of 78,000 in December. As such, the Dow Jones Industrial Average gained 0.12%, the tech-heavy Nasdaq slipped 0.02%, and the S&P 500 inched up 0.1%.
In a sign of further deterioration in investor sentiment, Asian stock markets fell on Thursday as caution set in over company earnings reports. On the other hand, expectations of large U.S. stimulus and subsiding retail frenzy supported risk sentiment. As such, Japan’s Nikkei 225 slipped 0.96%, while South Korea’s Kospi dropped 1.18%. Australia’s S&P/ASX 200 lost 0.87%. Hong Kong’s Hang Seng shed 1.2%, while the Shanghai Composite was down 0.84%.
As for currencies, the dollar extended its winning streak, rebounding from long-term lows. EURUSD has been gradually losing ground for the fourth day in a row on Thursday while flirting with the 1.2000 handle, a decisive break below which could pave the way to deeper losses in the short term. GBPUSD stays under pressure after a break below the 20-DMA ahead of the Bank of England meeting due later today. The central bank is not expected to alter the current stance of its monetary policy but the tone of the statement could affect the pair last seen around the 1.3600 figure.