Spreadex Market Update
Murmurs of help for Europe, as oil readies itself for OPEC decision
This followed the announcement yesterday by European Commission President Juncker of a European Fund for Strategic Investment of €300 billion, the first flagstone scheme of the Juncker presidency. This positive news out of Europe led the DAX to continue its upward trend, opening at 9905.5 after closing out Tuesday at 9866.2.
Unlike the vigorous DAX, the FTSE is continuing its meek week, opening Wednesday 0.5 points lower than Tuesday’s close at 6735.3. However it did manage to reach 6766.5 in its first hour of trading, as preliminary GDP figures arrived as forecast at 0.7%, signalling a 3% growth in GDP for over the year.
This positivity came despite the stock plummet of holidaymaker Thomas Cook. Whilst the company posted a 44% leap in earnings this morning, the shock decision by chief executive Harriet Green to step down spooked investors. Green, who has shepherded Thomas Cook out of its dark days since 2011, was seen as an asset for Thomas Cook, and her loss has been felt heavily on the markets. Following this share prices fell 25% to a low of 104.65, after closing Tuesday at 137.7.
In the battle of the US data, the strong GDP figures trumped the negative consumer confidence result to allow the Dow Jones to continue its record run, closing Tuesday at 17834.5, 17 points higher than the previous day. The overall positivity coming from the US allowed the Nikkei to close 27 points higher than its open at 17392.5.
Today will see the final flurry of US data before the US markets take a break for Thanksgiving, with unemployment claims, durable goods orders and new how sales change all arriving this afternoon. Despite the lack of US data, signs of strength or weakness in Black Friday and Cyber Monday sales should significantly affect the US futures at the close of the week.
Finally, oil is still languishing below the $80 per barrel level this morning as it tremors in anticipation for the OPEC summit tomorrow. With the US quiet on Thursday, even more focus will be on the state of Brent Crude oil, as the oil cartel effectively decides oil’s short term future.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
