Bad news from both sides of the world

Bad news from both sides of the world

After several countries from the Europe released reports regarding their diminishing GDPs, the US Unemployment Claims and the ECB casted an even darker cloud upon their respective economies.

The US

Just when everyone thought the number of unemployment claims settled and will start to decrease, the latest report released by the Labor Department shows otherwise. During the past week, 3.84 million people filed for unemployment. Analysts expected 3.5 million.

The good part is that the newest number is lower than the one reported for the week ended on March 28, when 6.87 million registered.

Jerome Powell, Chairman of Federal Reserve, said yesterday that the unemployment rate is likely to go higher than 10% from March’s 4.4%.

Consumer spending also dropped by 7.5%.

Upon release, USA30 and USA500 fell 0.5% each. TECH100 gained 0.2%.


Europe

The European Central Bank decided today to keep the interest rate at the same level. Still, it is prepared to increase the financial aid package worth $813 billion if necessary, as the Eurozone is close to recession. The decision comes as a response to the 3.8% GDP contraction – the lowest level since 1995. The government bond purchase will continue, and adjustments will be made if necessary.

Christine Lagarde stated that ECB expects an overall GDP contraction between 5%-12% for this year.

European stocks fell after the announcement, with the Europe50 benchmark falling 0.7%.


Sources: cnbc.com, forexfactory.com, ecb.europa.eu

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.


The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.