FTSE Surges As Chinese PMIs Impress
Fiona Cincotta December 1, 2020 4:19 PM
Vaccine optimism, impressive Chinese factory data and the prospect of continuing fiscal and monetary stimulus is keeping the European bourses upbeat.
After a phenomenal November run-up European markets are broadly resuming gains at the start of December, a traditionally strong moth for equities. Vaccine optimism, impressive Chinese factory data and the prospect of continuing fiscal and monetary stimulus is keeping the mood upbeat.
Manufacturing PMIs will remain in focus with data due from the UK and the Eurozone. The UK manufacturing sector has shown resilience across recent months even as services have shown signs of weakening. The flash estimate for UK manufacturing PMI was firmly in expansionary territory at 55.2 and this isn’t expected to change. Its understandable that manufacturing will be stronger than services during the lockdown period given that they haven’t been required to close.
House builders will be under the spotlight after Nationwide House Price data showed that UK house prices grew at the fastest pace since 2015 in November. The mini housing boom is showing no signs of letting up with house prices jumping 6.5% on an annual rate despite lockdown 2.0, as behaviour shifts and the stamp duty holiday keep the market robust.
Oil is under pressure once again battling $45 after OPEC+ members failed to reach an agreement over extending oil production cuts. Talks will be extended over the coming days which is likely to keep oil under pressure. Failure to agree a deal will see oil production increase by 2 million barrels a day at a time when travel restrictions and lockdown measures are likely to be dragging on demand.
Fallout from Arcadia’s collapse
Retailers are likely to attract attention as concerns grow over the health of the UK high street after Arcadia fell into administration. the fallout from this could be far reaching and that is unnerving investors. Not only are 13,000 jobs on the line, but landlords are also in line to take a hit from the collapse of Topshop’s owner.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.