Shares of computer-and-printer maker HP (NYSE: HPQ) rallied more than 15% on Thursday and climbed to a fresh all-time high of $41.40. The strong bullish momentum came after Warren Buffett’s Berkshire Hathaway bought a big stake in HP valued at about $4.2 billion.
On April 6, Berkshire Hathaway disclosed it had purchased almost 121 million shares of HP Inc, which gives it around 11.4% ownership of HP. The purchase makes Berkshire the single largest shareholder in HP.
“Berkshire Hathaway is one of the most respected investors in the world and we welcome it as an investor in HP,” said an HP spokesperson.
US futures holding the previous session gains supported by stronger-than-expected US initial jobless claims data. Initial jobless claims in the US last week fell to 166,000, the lowest level in over five decades, indicating continued labour market tightness.
Crude oil prices ended Thursday's trading session with notable losses amid plans for a massive reserve release. On the other hand, investors are closely monitoring sanctions against Russian energy after the EU banned coal imports from Russia.
In the currency market, the US dollar Index has extended gains against a host of major currencies. At the time of writing, the index trades near the psychological level of 100.00. Meanwhile, the EURUSD is currently trying to recover from the early session losses.
The safe-haven metal surged slightly during the European session. However, the upside movement is limited due to the increased probability of the Federal Reserve raising interest rates by 50 basis points (bps) in May.
On the data front, the European central bank released the minutes of the ECB's March policy meeting on Thursday. The minutes showed increasing concerns that current ultra-low interest rates were inappropriate given the surge in inflation, which is expected to now average 5.1% in 2021.
Moving ahead to the North American session, the investors should continue to monitor developments around the Russia-Ukraine war and the release of Canada's March employment report.
Worldwide, more than 490 million people have been confirmed infected and more than 6.13 million have died. The United States has confirmed over 80 million cases and has had more than 980,000 deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: For today, the first nearest support level is located at 1.0850. In case it breaks below this level, it will head towards the next support level which is located near 1.0820/10. On the upside, 1.0910 will act as an immediate and strong hurdle while 1.0950 will be a critical resistance zone because above this, bulls are likely to dominate.
The important levels to watch for today: Support- 1.0850 and 1.0810 Resistance- 1.0900 and 1.0950.
GOLD: For today, 1920 is the immediate support level, followed by 1914/10. If the index breaks below 1910, the slump will quickly extend toward the 1900 mark. On the flip side, the first resistance at 1945/50 any break above this level will open 1965/70 minimum.
The important levels to watch for today: Support- 1918 and 1910 Resistance- 1934 and 1945.
Quote of the day - "If you aren't thinking about owning a stock for TEN years, don't even think about owning it for TEN minutes." Warren Buffett.