Crude oil prices continue to fade as the oil trade is losing confidence on the global economic outlook. Because of the slowdown, fears surrounding Brexit and an uncertain political environment, optimism that rising demand would meet the trend of decline production has been pushed back by a couple of months.
The European Central Bank held interest rates and its quantitive easing on hold as expected on Thursday, July 21. The euro was weaker against major pairs after there was not clear signal on what the next step for the central bank is despite the anticipated negative effect of the Brexit vote on European growth by forecasters. Earlier in the week the German ZEW was a portent of things to come with a -6.8 confidence in the German economy for the next 6 months. For the full Eurozone the index was -14.7.
Japanese Prime Minister Shinzo Abe pledged today to use all available policy tools to keep the wheels of the economy turning as financial markets were gripped by uncertainty in the wake of Britain's shock vote to exit the European Union.
U.S. futures are pointing to a negative open on Thursday, tracking losses in Europe and Asia overnight, as investors weigh up the slightly hawkish Fed statement on Wednesday and look ahead to the advanced first quarter GDP data.