The risk mood is keeping more tepid with the dollar still holding its ground after a solid session overnight, where we saw US-China tensions continue to build and Fed chair Powell also offered a little push back against negative rates.
US futures also down by about 0.2% currently after another rough session for European and US equities in trading yesterday. The Dow Jones Industrial Average fell 2.19% to 23,244.81, the S&P 500 lost 1.75% to 2,810.00 and the Nasdaq Composite dropped 1.55% to 8,863.17.
The dollar edged higher against a basket of currencies, after Federal Reserve Chair Jerome Powell rejected the idea of using negative interest rates as a stimulative tool, even as he sounded a gloomy note about economic growth
EUR/USD was 0.29% lower against the dollar at $1.0815. USD/JPY witnessed some fresh selling on Thursday amid the downbeat market mood. GBP/USD drops for the fourth consecutive day, as downbeat UK data, Brexit and virus fears keep the British Pound heavy.
Oil prices fell despite the first decline in U.S. crude inventories since January, as markets were affected by a solemn address from the U.S. Federal Reserve chairman warning that economic recovery from the coronavirus pandemic would take many months. Brent crude fell 2.20% to $29.32 per barrel. West Texas Intermediate crude futures fell 1.05% to $25.51 a barrel.
Gold rose after U.S. Federal Reserve Chairman Jerome Powell pledged more stimulus measures, if required, to ease the economic blow from the novel coronavirus. Spot gold gained 0.70% to $1,714.03 per ounce.
Looking forward, Weekly jobless claims are due to show an increase of 2.5 million applications in the week ending May 8, extending the ongoing downtrend, yet still reflecting a devastating hit to the US economy. The release comes at 12:30 GMT.