US stocks look like opening lower on Thursday but that could all change should we get another bout of global central bank stimulus to rally global stocks, this time from the European Central Bank after the Bank of Japan played their part on Friday. Once the ECB policy decision is out of the way, speculation will begin over tomorrow’s non-farm payrolls unemployment report but before that there are earnings reported by DirecTV, AOL, King Digital, Molson Coors and Walt Disney. The strength of the US dollar and corresponding commodity weakness has played a prominent part in overall and sector performance of US equity markets. The divergence in monetary policy between the US and the rest isn’t likely to change today but should the ECB disappoint investors with no new stimulus measures; the euro could strengthen, short term dollar strength could run out of steam and commodities could see a pullback. The strength in consumer staples and weakness in the energy sector thanks to sinking oil prices could see at least a temporary turnaround should the ECB announce a pause in their efforts to aggressively ease monetary policy. There were some surprisingly positive results from big media yesterday which sets up well for Walt Disney who have blown away expectations in the past several quarters. There is a sea change in advertising with many firms increasing their digital adverting budget at the expense of TV. Disney relies less on advertising having income from its massively popular Frozen film and related merchandise, it’s theme parks and has put its ESPN sports content online. Disney shares are back trading at all-time highs after selling off with the Dow Jones Industrial Average in October; Disney earnings look to set to help shares outperform the broader market, the bigger question may be whether the Dow can hold these levels with the reduction in Federal Reserve stimulus. Futures suggest the: S&P 500 will open 5 points lower at 2,018 with the Dow Jones expected to open 37 points lower at 17,447 and the Nasdaq 15 points lower at 4,138. CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


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