Market Update and a Look Ahead into Next Week
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions for more information.
- Market Outlook – What happened this week across markets
- Investors eagerly anticipate Cyber Monday
- Cryptocurrencies post substantial declines
European equities are trading fairly muted and to the downside in the early hours post the opening bell on Friday, following a trading session yesterday without the US which adds to a lack of volumes. Caution appears to be setting in the European markets as investors assess this month’s rapid rise in stocks. The FTSE 100 is down by over 0.40%, while the German DAX and the French CAC40 are modestly higher by about 0.15% each. The US market will be back today and US futures are flat to positive ahead of the trading session, which on Friday will be shortened by 3 hours due to Thanksgiving. Trading will be shorter in Equities, treasuries, and in some commodity markets, oil in particular.
Having a light calendar today, market participants are already looking ahead to next week’s events where on Monday we have one of the biggest consumer trends of the year, Cyber Monday. Meanwhile, OPEC and its allies are meeting virtually at the beginning of next week to discuss oil supply. The event will take place on Monday and Tuesday.
On Tuesday and Wednesday, the market will be watching for comments from Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell when they testify on their responses to the pandemic. Moreover, Friday will see the release of the latest jobs report in the US as Wall Street expects non-farm payrolls to reach 520K compared to the previous 638K alongside a slight drop in unemployment expectations at 6.8% versus 6.9% for the previous month.
This weekend the market is also awaiting results from the Swiss referendum where voters decide whether to ban the Swiss National Bank from investing in defense company stocks. The Swiss will also vote on whether companies could face domestic legal proceedings if their foreign subsidiaries or suppliers abuse human rights or breach environmental standards.
Bitcoin Trades Flat
Moving to the crypto space, Bitcoin and other cryptocurrencies are trading relatively flat today after posting some of the biggest declines since the pandemic began. Earlier this week, Bitcoin climbed to an almost all-time high, reaching over $19,200 on Nov 25. Bitcoin depreciated by over 14% on Thursday. The number one cryptocurrency is now hovering around $16,800 to $17,000. Crypto enthusiasts have already learned to live with the extreme volatility as the trading pattern is rather standard for the cryptocurrency assets.
Vaccine Drives Excitement
The market has been largely in favor of risk assets for November driven by the excitement around vaccines. After announcing that their vaccine has a 90% efficacy rate, Pfizer and BioNTech recorded inflows into global equity funds. Over $89 billion have been invested in global equity and emerging markets, including value stocks and small-cap stocks.
Over to the Presidential affairs in the US, President Trump said he will give up power when the electoral college backs President-elect Joe Biden but may never formally concede to the Presidential election.
European leaders, however, have been quick to pivot towards the new leadership. France and Germany are leading efforts to normalize trade relations between the US and the EU under a Biden administration