European Central Bank leaves monetary policy unchanged

The US stock market ended Thursday's trading with confident growth. By the close of the stock exchange, the Dow Jones index increased by 0.68%, S&P 500 index added 0.98%, the NASDAQ index jumped by 1.39%. The consumer goods, technology, and industrial sectors were the growth drivers. The top gainers among Dow Jones index components were Merck&Company Inc (+6.14%), Caterpillar Inc (+4.06%), and Apple Inc (+2.50%). The fallen leader was Visa Inc (-2.75%).

On the New York Stock Exchange (NYSE), the number of grown papers was 2,252, the number of declined papers was 995, while the price of 122 stocks remained at the same level. On the NASDAQ exchange, 2,652 stocks gained, 995 declined, and 186 remained flat.

Mark Zuckerberg announced that Facebook will now be called Meta. Meta will create technology that will help people communicate, find communities and grow businesses. When Facebook launched in 2004, it changed the way people communicate. Apps like Messenger, Instagram, and WhatsApp have further expanded the possibilities of billions of people around the world. Now Meta is moving beyond 2D screens to immersive experiences (presence effects) such as supplemented and virtual reality to help build the next evolution in social technology. On the stock exchange, Facebook (current ticker FB) will begin trading under the new ticker MVRS on Dec. 1.

European stock indices finished the trading day without a single dynamic. German DAX index decreased by 0.06%, British FTSE 100 lost 0.05%. At the same time, French CAC 40 added 0.75%, Italian FTSE MIB added 0.31%, Spanish IBEX 35 increased by 0.6%. Even though inflation expectations in Europe are at their highest level since 2014, the European Central Bank did not change anything and kept its soft monetary policy until the end of the year. At the same time, ECB head Christine Lagarde pointed out during her speech that the PEPP program may end in March next year, and the period of higher inflation will last longer than previously expected. The euro quotes sharply jumped yesterday on the back of this news. Because of rising energy prices, Spain's inflation rate increased to the highest level since the country joined the EU. Spain's unemployment rate remains high, despite falling from 15.1% to 14.6%. In October, Germany's consumer prices rose to 4.6% in annual terms, and the German unemployment rate fell from 5.5% to 5.4%.

The level of oil and gas reserves in the world decreases for the fourth year in a row, the risks of the supply deficit are already being laid in prices. Yesterday, the price of WTI crude for December delivery rose 0.58% to $83/bbl.

On the back of Russia's promises to fill Europe's gas storage, the gas price dropped for the second day in a row. The gas price in Europe dropped below $900 per thousand cubic meters for the first time since September 24.

Gold prices are trading without change. In anticipation of the reduction of the quantitative easing program, investors are not in a hurry to buy gold, as with the growth of government bond yields, the price of gold will go down.

China's National Development and Reform Commission met with key coal producers to further discuss price interventions, and investors are wondering whether the authorities will impose a cap on commodity prices.

Asian stock indices are trading flat as concerns over rising inflation continue to weigh on markets. Japan's Nikkei and China's CSI 300 increased by 0.82%, while Hong Kong's Hang Seng and Australia's ASX 200 decreased by 0.71% and 1.44%, respectively.

Main market quotes:

S&P 500 (F) 4,596.42 +44.74 (+0.98%)

Dow Jones 35,730.48 +239.79 (+0.68%)

DAX 15,696.33 −9.48 (−0.06%)

FTSE 100 7,249.47 −3.80 (−0.05%)

USD Index 93.36 −0.44 (−0.47%)

Important events for today:
  • – Japan Tokyo Core CPI (m/m) at 02:30 (GMT+3);
  • – Japan Industrial Production (m/m) at 02:30 (GMT+3);
  • – Australian Producer Price Index (m/m) at 03:30 (GMT+3);
  • – Australian Retail Sales (m/m) at 03:30 (GMT+3);
  • – German GDP (q/q) at 11:00 (GMT+3);
  • – Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
  • – Eurozone GDP (q/q) at 12:00 (GMT+3);
  • – Canada GDP (m/m, q/q) at 15:30 (GMT+3);
  • – US Core PCE price index (m/m) at 15:30 (GMT+3);
  • – US Chicago PMI (m/m) at 16:45 (GMT+3);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3).

by Justforex, 2021.10.29

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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