VOT Research Desk
Market Analytics and Considerations
Friday saw a slight rise in European stock markets, helped along by increased consumer confidence in the United Kingdom following the Autumn Statement, but gains are likely to be patchy given the grim regional economic outlook.
At 03:30 ET (08:30 GMT), the DAX in Germany gained 0.5 percent, the CAC 40 in France gained 0.5 percent, and the FTSE 100 in the United Kingdom gained 0.2 percent.
Early on Friday, market research firm GfK announced that consumer confidence in the United Kingdom increased to -44 in November, providing investors with some encouraging news.
Even though it remained close to record-low levels, this was significantly better than the anticipated -52 and represents a rise from -47 in October.
In addition, retail sales in the United Kingdom increased by 0.6% in October, exceeding expectations but still representing a 6.1% year-over-year decline, as British consumers struggle to keep up with rising interest rates and inflation.
This came just a few hours after British Chancellor Jeremy Hunt said in his Autumn Statement that the country was in a recession. He also said that spending would be cut and taxes would go up by £55 billion (£1 = $1.1904) as living standards in Britain hit a record low.
Christine Lagarde, president of the European Central Bank, is scheduled to give a speech at the European Banking Congress in Frankfurt. Her speech is sure to be scrutinized for clues about how the Eurozone’s high interest rates will rise.
The European Central Bank is expected to reveal later on Friday how much banks plan to repay of the €2.1T (€1 = $1.0366) of loans they took out as part of its targeted longer-term refinancing operations. This will be of interest to the European banking industry.
In news about the company, Renault (EPA:Moody’s upgraded the French automaker’s outlook from “negative” to “stable” to reflect the company’s strategic plan’s improved profitability, which resulted in a 0.7% increase in RENA’s stock.
Tesco, LONDON:TSCO) stock rose 1.2% after Britain’s biggest retailer said it would give employees pay advances to help them deal with the rising cost of living.
Oil costs edged higher Friday, yet are as yet setting out toward a precarious week by week decline as a developing number of Coronavirus cases in China undermined request development at the world’s biggest rough merchant.
The National Health Commission reported on Friday that China recorded over 25,000 new COVID-19 infections on November 17. This is the highest number since April and is close to a record high. Additionally, as cases have spread throughout the populous Chinese regions of Guangzhou and Chongqing, concerns are growing that the spread will not slow down soon. This could result in new severe restrictions on mobility and a halt to economic activity. U.S. Crude futures were up 0.5 percent at $82.03 a barrel by 03:30 ET, down more than 7% week-to-date; the Brent contract was up 0.2 percent at $89.96, about 6% lower so far this week.
In addition, EUR/USD traded 0.1% lower at 1.0350 while Gold futures rose 1% to $1,765.50/oz.
