Stock Market Trading: 05 December 2014
With cash markets closing on a sour note, equity futures have rebounded and we are expected to start the day considerably higher.
The FTSE 100 is set to gain 26 points to 6699, the DAX is expected up 58 points at 9998 and the CAC is forecast to open 33 points higher at 4353.
Draghi stayed tight-lipped during yesterday's press conference, stating that he will 'reassess' the need for further QE at the next meeting in January.
This inspired immediate losses in European stocks as many feel that QE needs to happen sooner rather later given the five-year low inflation rate and diminishing confidence in the economy.
However, the futures markets regained some of the losses during a speech by the Fed's Brainard and US indices almost finished with record highs once more.
After reaching another intraday record of 17,938.5, the Dow Jones closed just 4 points lower at 17,899, with some profit taking also being fuelled by a renewed slump in energy shares.
There's plenty of data to mull over today, including European GDP, UK consumer inflation expectations and of course the US Non-Farm Payrolls.
The US employment report
is expected to show that the economy added 231,000 jobs in November.
If confirmed, we will have seen a gain of more than 200,000 jobs for 10 months in a row.
Stock Market Trading: 04 December 2014
Stock markets in Europe are set to open with modest gains today.
George Osborne stuck to his guns and repeated the need to tackle the budget deficit, so now the focus immediately turns to Mark Carney and the MPC to drive the economy.
The Bank of England will release its interest rate decision today and this is widely expected to be a non-event.
Even though we have had some good data of late, calming some anxiety building over the true state of the economy, a rate hike is certainly not on the cards.
Similarly, eyes will also be firmly fixed on the ECB and Mario Draghi as they release their rate decision and monetary policy statement followed by a press conference.
Since the last meeting, economic data has gotten worse and, with President Draghi throwing everything he can at the problem besides printing money, investors will want to hear that more stimulus is at least in the pipeline.
The FTSE 100 is called 11 points higher on the open, with the CAC 40 up by 7 points and the DAX 30 gaining 17 points.
Ahead of the Nonfarm Payrolls report
due on Friday, the Dow Jones extended its gains to hit a new intraday all-time high of 17,924 before closing 24 points higher at 17,905.
The catalysts for that were good results for energy companies together with positive economic data.
The latest ADP private payrolls report showed that US companies added 208,000 jobs last month, suggesting that the labour sector is on the right track.
Stock Market Trading: 03 December 2014
European equities are set to open higher this morning following gains in the US trading session.
European retail sales and UK Services PMI will accompany George Osborne as the most telling data points today, along with the Canadian Interest rate decision for our trans-Atlantic friends.
Chancellor Osborne is expected to deliver some hope in today's Autumn Statement, amidst concerns of 'out of control' borrowing.
One policy is set to give aid to the housing market, and especially first-time buyers, by radically amending stamp duty on houses.
Pressure will surely be mounting on the Chancellor's shoulders with the election around the corner, but in defiant mode he stated, stick with me and 'stay on course to prosperity'.
This morning we are expecting the FTSE
to open 19 points higher at 6751, with the DAX gaining 28 points to 9967 and the CAC adding 12 points to 4398.
The Dow Jones climbed to a fresh all-time high last night, rallying by 113 points to 17,882 following gains by energy and biotechnology shares.
It seems that US economic growth is gathering pace, bolstering investors' confidence, and pleasant surprises like yesterday's stronger construction spending will only add fuel to that fiery optimism.
Stock Market Trading: 02 December 2014
European equities are set for muted gains this morning, driven by some solid moves in Asia and Australia overnight.
The Reserve Bank of Australia maintained its record low interest rates in an attempt to boost the jobs market amidst a global economy where commodity prices continue to fall.
In recent days, the equity markets have been fairly reactive to the volatile moves in commodities, however, there will be plenty of data in Europe today for investors to mull over and gauge the current health of the economy.
The FTSE is currently expected to open 4 points higher at 6664, with the DAX up by 10 points at 9968 and the CAC
9 points higher at 4386.
led US stocks lower yesterday after manufacturing data from China and Europe disappointed investors.
The Institute for Supply Management showed US factory orders beating estimates, but that was not enough to stop the Dow Jones from dropping 25 points to 17,771.5.
On top of that, it appears the much talked about Thanksgiving sales were not much of a success either.
Stock Market Trading: 01 December 2014
European indices are set to open considerably lower after weakness in overnight trading.
Friday saw big losses for commodities
after OPEC stated that it would not cut production, and this downward spiral continued early Monday morning as oil hit fresh 4 year lows.
However, the biggest movers have been the metals, especially gold, which tanked on the open after news that Switzerland had rejected an initiative for the SNB to hold a fifth of its assets in the precious metal.
US equity futures have followed suit, with concerns mounting over disinflation and deflation.
A slew of data this week will provide traders with a real insight into the state of the British and European economies.
This will start on Wednesday when all eyes will be on the Autumn Statement as Chancellor Osborne updates the country on the Government's plans for the economy.
Following Thanksgiving, the Dow Jones rallied again as Black Friday fever engulfed the whole nation and boosted consumer companies.
Although it made important gains for the whole week, the Dow did retrace towards the close, finishing flat around 17,827 on light profit taking ahead of the weekend.