Spreadex Market Analysis: European Markets Trade In Positive Territory

AM Analysis – “Volumes have been light as the trading week draws to a close” – Max Cohen
Volumes have been light as the trading week draws to a close owing to the shutdown of U.S markets as Americans around the world celebrate Thanksgiving. Whilst U.S indices remained closed all of yesterday, today will see the equities trade on a half day basis, opening up at the usual time and closing at 18:00 GMT.
 
We can expect this afternoon’s session to be a livelier affair when the U.S markets re-open as investors seek to squeeze all their trading into a small window before heading into the weekend. Asian shares seem likely to end the month lower for the first time since August, trading 9.7 percent higher through 2013. Trading volumes have slumped in the past two months after prices surged 6.4 percent in September whilst the Asia-Pacific index continues to trade at 14 times estimated earnings, the highest since May.
 
More than $8 trillion has been added to the value of global equities this year, the biggest increase since 2009, after central banks took steps to shore up their respective economies. The markets have warmly received the anticipated appointment of Janet Yellen as new Head of the Federal Reserve, who is seen as a more dovish candidate than some of her rivals, pledging to maintain record bond purchases until data points towards a sustained and dependable recovery.
 
Additionally, the ECB have made incredibly similar claims to those of U.S policymakers, stressing a need to maintain stimulus as a means of navigating out of the financial crisis. The ECB, have pressed ahead with plans to maintain stimulus in the face of German criticism. This is a direct response to the ECB cutting interest rates to record lows this month and said it could take them lower still to prevent the euro zone recovery from stalling.
 
Meanwhile, the BoE are seemingly developing a slightly different strategy to the rest of Europe with winding down of stimulus potentially on the horizon. This comes after the pound rose to the strongest level since January as investors bet the changes to the Funding for Lending Scheme nudge the BOE toward an exit from extraordinary stimulus as the economy grows at the fastest pace in three years.
 
Britain’s 0.8 percent growth in the quarter through September was the quickest among the Group of Seven nations, according to the Organization for Economic Cooperation and Development. That compares with 0.3 percent in Germany and 0.1 percent in the euro area, Britain’s biggest trading partner.
 
PM Analysis – “European markets continue to trade in positive territory” – Lee Mumford
European markets continued to trade in positive territory on thin volumes as the US pause for the Thanksgiving holiday period. US equities will open for half a day, although markets are likely to remain subdued. US futures are indicating a slightly higher open as retailers climb on optimism over holiday sales.
 
Data from Europe showed unemployment unexpectedly declined in October in a sign that a promising recovery is starting to show its effect on the labour market. The jobless rate fell to 12.1 percent in the 17-nation economy from a record 12.2 percent in the prior month.
 
West Texas Intermediate crude headed for the longest losing streak in almost five years, amid rising OPEC exports and increased supplies in the U.S., the world’s biggest oil consumer.
 
[The original articles by Spreadex can be found here.]
 
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