Quiet trade expected on Thanksgiving
Fiona Cincotta November 26, 2020 4:03 PM
European bourses are seen advancing on Friday as vaccine optimism and hopes of more economic stimulus under Joe Biden, overshadowed soft US data and slumping German consumer confidence. A relatively quiet session is on the cards with the US closed for Thanksgiving
European bourses are seen advancing on Friday as vaccine optimism and hopes of more economic stimulus under Joe Biden, overshadowed soft US data and slumping German consumer confidence. A relatively quiet session is on the cards with the US closed for Thanksgiving
Data from Europe this morning was far from encouraging. German GFK consumer for December declined by more than expected to -6.7, down from -3.2 in Nov and worse than -5 expected. Consumer morale in the Eurozone’s largest economy is feeling the weight of the second nationwide lockdown, which is now being extended until 20th December.
The FTSE is managing to advance even after a stark warning from the Chancellor yesterday that the UK will borrow £400 billion this year to support the UK economy through the covid crisis. Whilst the OBR forecast an -11.3% contraction of the UK economy. The OBR also warned that failure to secure a Brexit deal will see a further 2% shaved off UK economic output.
Government’s tier breakdown in focus
Today the British government will lay out the covid restrictions for each local authority in England for when the economy reopens next week. How strict the rules are, particularly in the large cities will determine how quickly the UK economy will be able to bounce back from the latest national lockdown.
FTSE Chart
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