Oil sector stocks have driven the FTSE lower, and in the first couple of hours we are down by 38 points.
The effects of yesterday’s OPEC decision to maintain its oil output is still working its way through the markets today. Eurozone inflation figures are first up today and these latest deflationary developments are unlikely to have worked their way into the figures just yet. Today has seen both France and Italy post record levels of unemployment in the same week that Germany has posted record low levels. A clear signal that the eurozone dream still needs tweaking.
The template for equity markets today has been clear from the beginning. Oil and energy manufacturers are down, while those companies that are oil consumers are up. Airlines are flying with the biggest cost now dropping into the $60 a barrel region — a 40% fall in the last five months. Any doubts that the UK, and more specifically UK retailers, would wholeheartedly join in the US obsession with Black Friday have been quashed. The feeding frenzy that appears to be happening in shopping malls up and down the country should ensure festive sales for the retail sectors get off to a flying start.
America will be doing its best to burn off the excess calories from yesterday’s Thanksgiving turkey stuffing, by embarking on the biggest day of shopping in the calendar. Although not a bank holiday today, US markets will be running reduced trading hours and equity volumes historically struggle to raise too much of an interest.
Ahead of the open we expect the Dow Jones to start 43 points lower at 17,784.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.