Financial Market News 01.04.2021 Thursday

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DAX in Germany traded 0.6% higher at an all-time high, the CAC 40 in France rose 0.2%, the U.K.’s FTES 100 gained 0.5%, while the blue chip Euro Stoxx 50 gained 0.4%, also at an all-time high. ASML (AS:ASML) stock rose 1.6%, to a record high, with the semiconductor sector in demand during the Covid-19 pandemic as consumers buy more electronics for their homes. Vinci stock rose 3.0% after the French infrastructure company said it will buy the energy business of Spain's ACS (MC:ACS) for 4.9 billion euros ($1.75 billion), a move that beefs up its exposure to renewable energy significantly. Next (LON:NXT) shares rose 3.2% to an all-time high after publishing strong earnings and an upbeat look ahead to the reopening of its physical stores. Deliveroo (LON:ROO) stock fell 1%, as Europe's biggest IPO of the year to day failed to generated even a modest bounce after slumping by nearly one-third on its debut. Taiwan Semiconductor Manufacturing Co., the world's largest contract chip manufacturer, announced plans earlier Thursday to invest $100 billion over the next three year to increase capacity at its plants. Oil prices pushed higher Thursday on expectations that a group of top producers will agree to largely maintain output curbs into May at a meeting later in the session given the surge of Covid-19 cases in many regions. U.S. crude futures traded 1.5% higher at $60.05 a barrel, while the Brent contract rose 1.4% to $63.60. Gold futures rose 0.2% to $1,719.75/oz.


GBP/USD to gather stronger downside momentum below 1.3670 – OCBC “The GBP/USD pair range is narrowing to the 1.3700 to 1.3800 zone, potentially signaling a breakout. We expect it to be on the downside, especially as the USD remains on the ascendant and technicals are still more supportive of a downward move.” “Breach of 1.3670 needed for stronger downside momentum.” EUR/USD to resume its falls as Europe braces for further pain from the virus. The round 1.17 level provided support earlier this week and remains critical support. It is followed by 1.1630, 1.16 and 1.1550, all dating back to the autumn of last year. The dollar remained strong in early European trading Thursday, near multi-month highs amid expectations of strong U.S. economic growth, helped by more fiscal stimulus and an accelerating vaccine rollout. The dollar index was up 0.1% at 93.312, having hit a five-month high of 93.472 earlier. USD/JPY rose 0.1% to 110.78, having risen to as high as 110.97, its highest level in a year. The ADP report on Wednesday showed U.S. private payrolls increased by 517,000 jobs last month, a precursor to Friday’s official employment report which is expected to show another increase of around 650,000 payrolls in March.
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