Asian stocks were supported by robust corporate earnings that helped Wall Street quell concerns about the surge in U.S. bond yields. However, sagging Chinese shares limited the upside potential of the market.
The ECB’s rate decision is due followed by Draghi’s news conference today. The European Central Bank is set to keep policy unchanged, playing down worries over recent softness in the euro zone economy and leaving the door open to ending its lavish bond purchase scheme by the close of the year. Euro zone inflation is so weak that even after the creation of 9 million jobs since early 2013, measures of underlying price growth that strip out energy and food are barely rising.
In currencies the near-term focus is on the European Central Bank’s rates review due later on today. EURUSD rose 0.2 percent to 1.2179 but was still within sight of a near two-month low of 1.2160. USDJPY is trading at two months highs at 109.50.
In Commodities Oil prices rose on Thursday, supported by expectations the United States will re-impose sanctions against Iran, a decline in output in Venezuela and ongoing strong demand. Brent crude oil futures were at 74.27 per barrel, up 27 cents, or 0.4 percent, from their last close. Crude Oil Futures were up 14 cents, or 0.2 percent, at 68.19 per barrel. Gold prices rose earlier in morning as the dollar retreated across the board in Asia despite the rising 10-year U.S. treasury yields, trading at 1325 a troy ounce.
Forex market economic calendar contains important news today. Moderate to high volatility is expected for the Euro & the US Dollar. There is ECB Press Conference, which could move the Euro and US Dollar Core Durable Goods Orders m/m.