Joshua Mahony MSTA
Scope Markets
European markets focus on possible ECB bonanza
Thanksgiving holiday avoids economic distractions
Volatility likely amid low volumes
Severn Trent has investors gushing
European indices are breaking higher once more, in a continuation of the trend that has seen the FTSE rise over 5% in ten days. The worries surrounding a US rate hike and the impact it could have upon commodity prices have failed to dominate FTSE trading so far. Instead, Europeans look forward to a bumper ECB meeting which could see Mario Draghi shift both rates and QE in a bid to stave off disinflation and raise growth.
Today, traders can give thanks for a relatively calm day in the markets, as the US holiday brings the expectation of relatively few left field economic releases to adversely impact their trades. News traders will no doubt be wishing yesterday’s whole raft of US economic announcements were spread across the two days, but for technical traders this provides the perfect opportunity to let the charts do the talking. With most of the US trader base staying away from the markets, volumes will no doubt be hit, which has the propensity to raise volatility.
Severn Trent today showed that its plan for achieving greater profits amid lower prices was attainable, with the firm cost-cutting and streamlining its way to a pre-tax profit of £281 million in the first half. With complaints falling by 35% and customers now enjoying the lowest combined prices in the UK, it is no wonder the share price has seen a bounce in early trade.
Ahead of the open we expect the Dow Jones to start 67 points higher, at 17,880.
This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regards to past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.