UK markets
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The more investors learn, the less impressive Thomas Cook's handling of Harriet Green's departure looks. Market speculation suggests there are now 10 million reasons why the now departed CEO will not be the one to spill the beans. Suffice to say her time in charge saw shares rise ninefold, and the announcement of her departure saw shares drop by over 20%. Once again FTSE CEO pay packages are gaining headlines; considering the issues that BG Group have had over the last couple of years, a £25 million package for new CEO Helge Lund looks more than a little generous. SAB Miller and Coca-Cola have decided to reduce costs by sharing bottling facilities in Africa, where facilities would
manufacture only the non-alcoholic beverages offered by both companies. Pitcher & Piano owners Marston’s has seen full-year figures fall by 3.6% but part of this can be attributed to a change in the accounting period.
US markets
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Today’s Thanksgiving bank holiday has seen US equity markets shut, but this is merely the quiet before the storm of Black Friday. Only the most tenacious shopper will be looking forward to the battle that awaits, as tomorrow US stores slash prices and throw open their doors in the run up to Christmas. Economists will be holding their breath to see how strong retail figures are as the acid test of US consumer confidence starts on Friday.
Commodities
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OPEC has decided to keep oil production unchanged and the spot oil markets have subsequently collapsed as the template of oversupply and weak demand keeps the pressure on energy prices. The sound bites that came out before this meeting all inferred that Saudi Arabia was happy to maintain its market share. Historically, when it comes to altering supply levels, it has fallen on the Saudi’s shoulders to make the changes, and without their leadership few OPEC members were likely to go it alone.
FX
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Having seen the balance of power between the US dollar and both the pound and euro readdressed this morning, the afternoon's OPEC news has ended speculation of this continuing. Both the UK and the eurozone have inflation at rates lower than they are comfortable with, and the likely further falls in energy prices due to OPEC maintaining output could see more pressure on these currencies. Today’s news will see Bank of England governor Mark Carny reaching for his pen and paper, as any lingering doubt that he would have to explain the inflation rate moving more than 1% away from the 2% target has now disappeared.
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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.