Positivity in Europe as OPEC summit looms closer

The Dow had a muted, but still record breaking, close to Monday, finishing the day 5 points higher at 17817.5, as violence erupted in Ferguson after the not guilty verdict for the police killing of an unarmed black teenager.

As Black Friday grows nearer, US retailers will be waiting with bated breath for the consumer confidence figures that are due from the US later today; this number will be an indicator of how the peak retail period pans out this weekend. Similarly, the Dow will be wary of the US preliminary quarter on quarter GDP, as it looks to reach 18000 before the New Year.

After a Bank Holiday yesterday, the Nikkei opened strongly at 17525.5, only to close around 30 points lower at 17492.5. This came as Bank of Japan Governor Kuroda defended the decision to continue quantitative easing, and reinforced the fact that the Bank was continuing to do whatever it could to ensure Japan reaches its desired 2% inflation rate by next year.

The FTSE continued to feel the effects of Petrofac’s share combustion, as the oil service provider continued to fall today after its profit warning yesterday. The weight of this stock caused the FTSE to close at 6742.5 last night, opening lower at 6727.7 this morning. This comes despite boosts for British giants like BT, whose bid news in relation to O2 and EE caused the communication company’s stock to continue to rise this morning by another 1.5%.

Whilst the FTSE searches for renewed vigour after its seven week highs last Friday lost steam, Europe is still seeing positive sentiment lingering from President Draghi’s intervention-promising comments last week. The DAX closed Monday at 9813.8, and opened 9816.5, rising to 9858 after economic figures came in on target. Year on year German GDP was 0.1%, the forecast figure, and the same as last year. The combination of Germany avoiding recession, alongside good will from Draghi last week has led to a sustained period of bullish sentiment around the Eurozone, especially Germany, with the euro also growing after its brief scare at the tail end of last week.

Finally, as the OPEC summit approaches, oil is still languishing below the $80 per barrel level. Experts predict that there is only a slim chance of cut in oil production by the cartel, as pressure from the rest of the world increases. Russia announced yesterday it was willing to cut its own oil production; despite not being a part of OPEC, it remains the biggest producer of oil outside the cartel. However, the apparent oil price war looks like it has no short term end in sight, as the members of OPEC remain wary of threats inside and out, as Saudi Arabia and the USA eye oil prices carefully.