Equities correcting gains on Thursday

It looks like today’s trading will be with a bearish preference as major indices were trading circa 1% lower during the London session. 

The vaccine optimism, which drove the markets sharply higher this week, seems to be waning as it will take years until a possible vaccine is fully distributed throughout the world. Till then, more lockdowns and more pain are coming.

European Central Bank President Christine Lagarde expressed caution Wednesday over expecting too much too soon from a Covid-19 vaccine. Therefore, the market now expects the ECB to announce more stimulus at its December meeting. 

Later in the day, US inflation indices are due, along with jobless claims. These data do not cause any significant volatility any longer; thus, the overall sentiment should drive the market during the US session.

Moreover, speeches from many central bank governors are expected. Bailey, Lagarde, and Powell will be of major importance.

In FX, the USD has been consolidating on Thursday, with the EURUSD pair trading near 1.1780, and the USDJPY pair last seen at 105.30.

Source: https://www.axiory.com/market-news/equities-correcting-gains-on-thursday