European equities were lower on Thursday along with US futures with cash markets closed for the Thanksgiving holiday.
European shares traded modestly lower on Thursday as cyclical shares underperformed while technology and healthcare rose. The Euro Stoxx 600 was little changed, down just -0.12% having risen +14.5% month-to-date, with healthcare and information technology rising +0.76% and +0.73% respectively while energy and financials fell -1.41% and -0.56%. The DAX30 was little changed at -0.02%, as was the CAC40 -0.08% and the FTSE100 declined -0.44%. Futures tracking the S&P500 declined -0.26% while Nasdaq100 futures were flat, up just +0.01%.
The Euro edged modestly lower against the U.S. dollar after German and French consumer confidence survey’s missed expectations as lockdowns hit sentiment. German consumer confidence measure fell to -6.7 against estimates of -5, with worries around income rising. Similarly, French consumer confidence also declined more than anticipated to 90 vs 92 expected on worries around personal financial situations. Yields on German and French 10-year government bonds weakened -2 and -1.8 basis points respectively.
Bitcoin continues to grab headlines, sliding 10% after rising to within a whisper of it’s all-time high from December 2017. The falls seemed to be in response to fears over tighter regulation with Coinbase. Inc’s CEO Brian Armstrong tweeting about concerns the Trump administration may rush out rules to track owners of self-hosted wallets. The price had surged +77% since the end of September, given the strength of the rally which has almost been parabolic, it is unsurprising to see a correction.
*Note: These prices are based on futures and/or CFD pricing and may therefore differ slightly from spot pricing.
Local shares are set to open lower on Friday with ASX200 futures down -0.26% at 6,626. The ASX200 closed -0.70% lower on Thursday at 6,636.4 led by declines in financials -1.42% and industrials -1.13% while technology and utilities outperformed +0.97% and +1.22% respectively. TechnologyOne was the top performing stock, jumping +5.64% having released full-year results earlier in the week, including consideration of a special dividend. Harvey Norman was the second best stock up +5.46% after several brokers raised their target prices following a positive trading update on Wednesday with sales revenue rising +28% financial year-to-date and net profit after tax up +160%. Virgin Money UK shares sank -11.54% after the bank set aside more money for bad loans than anticipated with pre-tax profit slumping 77% through to 30th September while also scrapping 2022 targets due to the uncertainty of the pandemic.
Oil prices paused following recent gains with WTI and Brent crude down -1.58% and -1.67% respectively. Base metals were mixed with aluminium and nickel down -0.83% and -1.13% while copper edged +0.10% higher. Precious metals gold and silver rose +0.35% and +0.27% to US$1,813.91 and US$23.42.
- U.K. House Prices (YoY Nov) 18:00
- E.Z. Consumer Confidence (MoM Nov) 21:00
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
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