Europe Stocks Head Higher After Record Breaking US Session
Fiona Cincotta November 25, 2020 3:24 AM
After a record setting session in the US, EU stocks are heading broadly higher, although the pace of gains suggest that the risk rally is easing slightly
After a record setting session in the US, EU stocks are heading broadly higher, although the pace of gains suggest that the risk rally is easing slightly. Vaccine optimism, EU governments starting to ease lockdown restrictions and more US political clarity have driven stocks firmly higher across the start of the week. However, investors are now looking ahead to a slew of US data due later today for further cues ahead of the Thanksgiving break.
Today UK Chancellor Rishi Sunak’s one year spending review will be in focus. There are suggestions that the foreign aid budget will be cut in addition to a public sector pay freeze, which is likely to be met with a frosty reaction. More funds are also expected to be allocated to helping those get back into the labour market after the covid culling.
Oil prices continue to bound higher focusing on the prospect of a viable vaccine improving future demand, whilst shrugging off near term concerns of building crude supplies. US crude inventories rose by 3.8 million barrels last week according to the API, EIA data is due later today.
Looking ahead there are several key US economic reports that will be released, including GDP, jobless claims and durable goods which could provide plenty of volatility for trading opportunities.
The FTSE is edging higher after surging northwards earlier in the month. A break over resistance at 6510 could see the FTSE power higher towards resistance at 6670. On the flip side a break below 6300 a level which has offered support across the month could see FTSE head towards support at 6050 200 day sma.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.