The relentless gains continue on Wall Street when the S&P 500 posted it’s another record high on Friday, and it certainly seems like that this train of gain is on its full steam and there is nothing stopping this train. The reason which is making this argument stronger is that during the 2013, we only had…
Read MoreDespite a thin volume and no US trading due to thanksgiving holiday in the US, European markets were able to push for another positive close yesterday. The DAX index especially is determined to show its resilience to any concerns which are within the euro region after the index touched another its record high mark.
Although you could argue that the possibility of another rate cut is not off the table yet by the ECB, but the economic data-German CPI which was released yesterday, have made odds weaker, for such an event to take place. This is despite the fact, that both German Retail sales number and French consumer spending reading, both have disappointed traders this morning with weak numbers.
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Asian markets closed higher today on the back of the weakness in the yen. The yen dropped to a six month low against the dollar today . The dollar has surged nearly 4% during this month against the yen. This weakness in the yen has helped the exporters to compete against their competition abroad.
The Nikkei index was the best performer during the session and it closed higher with a gain of 1.80%. The index is up nearly by 4.32% in the past 5 days. The Shanghai index was the second best index during the session and it gained nearly 0.81%. However, the Hang Seng index closed lower with a loss of 0.07%.
As the US markets are enjoying their Thanksgiving holiday today, we will expect a subdued reaction in the European market session and the volume could be extremely thin. German unemployment data
Read MoreWhile the economic docket is full with fairly big data events today, we had another record high for the Dow on Wall Street yesterday. The S&P 500 on the other hand, faced headwinds due to a disappointing consumer confidence number, which we predicted yesterday. However, the index did manage somehow to finish marginally higher.
Asian trading session also felt the heat of the political instability among China and Japan and the equity markets closed somewhat mixed.
The main focus for traders during the European session will be the Q3 GDP reading for the UK’s economy which is due at 09:30 GMT. I am not expecting any kind of a massive surprise in this reading and it is more than likely that reading of 0.8% could be confirmed, once the data is released. The important thing to focus in this reading will be the amount of export which is driven by this quarter’s growth, and how the private consumption have been over this quarter.
Read MoreAnother day and another record high on Wall Street where the NASDAQ hit the 4000 mark after 13 years yesterday, but these gains were short lived as traders started to put the kid on their profit.
On the other hand, the 2% fall in the Brent prices which we experienced yesterday morning on the back of the Iranian deal went pretty much in full reverse in late afternoon, as the dust settled and traders saw the real picture. The reversal took place because the deal does not alter the prospects of supply versus the demand for Brent. Therefore, it is safe to say, that the gains which took place in the airline sector yesterday, could be under pressure today, if the above agreement has its merits which is supply side remains unaffected by this Iranian deal.
Read MoreSeries of record finish on the Wall street which we have seen last week, is stimulating the European markets on the first trading day of the week. Asian markets also traded in a positive territory for another day on the back of the Iranian deal which shows that the sanctions could be reduced on Iran and…
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