Oil prices extended the recovery to $72.80, targeting the $73 figure
Wall Street indexes climbed overnight, extending the rebound amid better-than-expected results from big corporations. As such, Coca-Cola stock was up 2% after the company raised its full-year forecast and reported better-than-expected results. Johnson & Johnson shares were up 0.5% after the company reported a 73% rise in profits. On the negative side, Netflix fell 2.6% after reporting its worst slowdown in subscriber growth in eight years. The S&P 500 index rose 0.82%, the Dow Jones Industrial Average gained 0.83% to 34,798 and the Nasdaq Composite added 0.92%.
Today in Asia, equities extended gains amid earnings optimism that outweighed concern over rising coronavirus cases in the region. The Shanghai Composite Index rose 0.34% and the Hang Seng in Hong Kong surged 1.83%. The Kospi in Seoul added 1.07% and the S&P/ASX 200 in Sydney rose 1.06%. Tokyo markets were closed for a public holiday.
European markets opened in positive territory on Thursday due to the persisting upbeat global sentiment. The pan-European Stoxx 600 climbed 0.7% in early trade ahead of the latest monetary policy announcement from the European Central Bank due later today. US stock futures are trading marginally higher today. US jobless claims data will be in focus later in the day.
Meanwhile, the dollar has to retreat as the market mood remains cheerful. However, the euro is lagging as tensions rise towards the potentially dovish ECB decision due later today. The central bank is set to announce its first decision following its announcement of a strategic review in which Christine Lagarde promised communication changes and potential developments related to the bank’s bond-buying scheme. Bearish expectations along with rising virus cases in the old continent have capped EUR/USD under 1.18.
In commodities, Brent crude rallied on Wednesday, reversing most of the losses seen at the start of the week. Oil prices extended the recovery to $72.80, targeting the $73 figure. Of note, the market shrugged off the first weekly U.S. crude inventory rise since mid-May. The Energy Information Administration reported that U.S. crude inventories rose by 2.1 million barrels for the week ended July 16. On the other hand, the release pointed to a decline in crude stocks at the Cushing storage hub to the lowest level since early 2020.