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
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
USD/JPY: Japanese Yen advances to nearly three-week high against USD ahead of US NFP
The Japanese Yen continues to draw support from speculated government intervention. The post-FOMC USD selling turns out to be another factor weighing on the USD/JPY pair. Investors now look forward to the crucial US NFP report for a fresh directional impetus.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
High hopes rouse for TON coin with Pantera as its latest investor
Ton blockchain could see more growth in the coming months after investment firm Pantera Capital announced a recent investment in the Layer-one blockchain, as disclosed in a blog post on Thursday.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.