Colin Cieszynski | Nov 21, 2016 08:44
It’s US Thanksgiving week, a time when markets usually pause for a break with a lot of traders heading home for the holidays, football and shopping. The initial impact of the US election has run its course and traders are now looking ahead to a flurry of economic numbers on Wednesday morning and Black Friday sales reports into next weekend.
Today finds US index futures for the S&P 500 and NASDAQ up 1.2% with Dow futures marginally in the green. The Dow remains just below all-time highs near 19,000 with the S&P sitting just below 2,190. The US Dollar Index has paused to rest and remains vulnerable to potential profit taking ahead of the holiday weekend.
European markets are also trading higher to start the week The FTSE is up 0.6% while the Dax is up 0.4%. Political news has been dominating trading across the pond with talk around the UK autumn statement indicating plans to build on current monetary support. Former French President Sarkozy lost his party’s primary for next year’s election to Francois Fillion while German PM Merkel announced her intention to run for a fourth term in office next year.
Italy’s FTSE MIB is down 0.4% after weekend polls, the final ones before the December 4th constitutional referendum show the No side with a growing lead which could lead to the resignation of PM Renzi and another rejection of the establishment. EUR is trading broadly higher today on all of this news with the Bundesbank expecting a strong Q4 for Germany and inflation expectations picking up.
The biggest moves have been in energy and metals markets this morning. Renewed deal speculation heading toward the November 30 OPEC meeting has WTI up 2.0% and Brent up 2.2%. In metals, copper is up 2.2% overnight while previous metals (gold, silver and platinum) are up 0.8% across the board. This could provide support to resource stocks today along with resource currencies including CAD and AUD.
Written By: Colin Cieszynski
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.