Today the market is closely watching Fed Jerome Powell’s intervention at the Wall Street Journal Conference and a debate regarding another coronavirus relief bill worth $1.9 trillion in the White House.
As for cryptocurrencies, Bitcoin has gained more than 6.4% within the last 24 hours. March is yet another month when Bitcoin is increasing. Market participants are hoping to continue the bullish outlook. On Wednesday, bitcoin was trading above $50,000.
After yesterday’s significant losses, market participants will actively focus on the tech industry. In the fourth quarter, airline Lufthansa (DE: LHAG) released a report that showed a smaller loss than experts had anticipated. Moreover, the company believes the operating loss in 2021 will be lower than last year.
On Wednesday, traders’ focus has been the sticks poised to benefit from the economic reopening. Therefore tech shares were under high pressure. Yesterday, Nasdaq fell by 2.7%. The weakness also influenced Asian markets. Nikkei dropped 2.1%, and Hang Send fell by 2.5%.
Following the weakness of Wall Street, European stocks also opened lower on Thursday. However, experts are waiting for the earnings report from the pharmaceuticals and chemicals leader Merck from Germany. The Pharma industry plans to ship out treatments and vaccines against coronavirus to respond to the increased demands for its suppliers for biotech labs. Therefore, the predictions for further earnings are in favor of the pharma industry in 2021.
After traders positioned themselves before a meeting of the Organization of the Petroleum Exporting Countries and allies (known as OPEC+), oil prices went up. Experts expected the influential group to ease production cuts. However, according to Reuters, they are currently considering rolling over the current output curbs in April so that the recovery in oil demand will become more established over time. Market participants have consequently looked through Wednesday’s spike in U.S. crude stockpiles that jumped a record 21 million barrels last week. The recent windstorms and wintry weather in the southern states have influenced the mentioned figure.