UK markets closed higher yesterday, as French and German leaders proposed a new European Union treaty to strengthen the Eurozone fiscal rules and after Italy unveiled a sweeping austerity package, lifting market sentiment.
Among financial stocks, Lloyds Banking Group and Royal Bank of Scotland climbed 6.3% and 5.3%, respectively, as Deutsche Bank issued an upbeat note on the UK domestic banks.
Aviva added 1.8%, amid speculation that the company is mulling the sale of a tranche of its pension assets to boost its cash balance.
Fund managers, Schroders and Man Group advanced 1.9% and 2.8%, respectively, after their peer Aberdeen Asset Management reported a 44% rise in profit for fiscal year 2011.
Vedanta Resources rose 2.3%, amid speculation that India's interior ministry had cleared its purchase of a majority stake in Cairn Energy's business in the country.
FTSE 100 rose 0.3% to 5,568.0, while FTSE 250 gained 0.6% to settle at 10,368.3.
European Trading Review
European markets closed in the positive territory yesterday, as worries about European debt crisis eased, after Italian Prime Minister, Mario Monti, introduced a plan to cut the country’s debt. Market sentiment was further buoyed after German and French leader’s proposed to bring a new European Union contract for stricter enforcement of the region’s deficit rules.
Banking stocks, Banco Popolare, UniCredit and KBC Group rallied between 5.4% and 13.0%, as risk appetite increased among investors, while Commerzbank dropped 4.1%, after the company offered to buy back some hybrid instruments.
Carmaker, Daimler, rose 1.3%, after its Mercedes-Benz unit announced that sales in China and Hong Kong rose 30% through November.
Utility stock, RWE, added 2.2%, after it announced that it would cut its workforce.
FTSEurofirst 300 index added 0.8% to 993.3. German DAX Xetra 30 rose 0.4% to 6,106.1. French CAC-40 rose 1.1% to 3,201.3.
US Trading Review
US markets closed higher yesterday, amid optimism that Europe would be able to quell the region’s debt crisis, shrugging off a report that Standard & Poor’s has put 15 European nations on review for a possible downgrade.
Tenet Healthcare, the top gainer on the S&P 500 index, rallied 12.4%, after a broker upgraded the stock to “Outperform”.
MetLife added 3.7%, after it stated that next year’s earnings would match market expectations.
JPMorgan Chase advanced 3.7%, and emerged as the top gainer on the DJIA index, while Goldman Sachs, Bank of America, and Morgan Stanley jumped between 2.6% and 6.8%, amid easing worries over the European contagion risk.
Media stock, Gannett jumped 10.2%, after a broker lifted its rating on the stock to “Buy” from “Neutral”, citing increased chances for a dividend boost.
DJIA gained 0.7% to close at 12,097.8. NASDAQ surged 1.1% to settle at 2,655.8. S&P 500 soared 1.0% to end at 1,257.1.
Forex Trading Review
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5626, marginally lower against the EUR at €1.1683, and 0.1% lower against the JPY at ¥121.57.
The EUR is trading 0.1% lower against the USD at $1.3375.
The EUR is trading 0.1% lower against the JPY at ¥104.06.
The JPY is trading higher against most of its peers, after Standard & Poor’s put 15 European nations on watch for potential downgrade, boosting demand for safe haven assets.
The AUD is trading lower against all of its major peers, after the Reserve Bank of Australia cut key interest rate by 25 basis points to 4.25%, to sustain the country’s economic growth.
Yesterday, the EUR closed lower against the USD, amid report that Standard & Poor’s had put 15 Eurozone nations for a possible credit rating downgrade.
The GBP closed higher against the USD, on optimism that euro-area leaders are working to contain the region’s debt crisis, increasing demand for higher yielding assets.
Commodities Trading Review
In Asia, crude oil for January delivery is trading 0.5% or 46 cents lower at $100.53 per barrel.
Yesterday, crude oil futures for January delivery closed marginally higher at $100.99 per barrel. This came amid speculation that rising tension in the Middle East would threaten supplies.
Crude oil prices rose on hopes that European leaders would take steps to resolve the region’s debt crisis, increasing demand for crude oil.
Gold for immediate delivery is trading 0.4% lower today, at $1,714.63 per ounce.
Gold for February delivery shed 0.7% or $11.70 to settle at $1,722.80 per ounce yesterday, as the dollar rose against the euro, decreasing the demand for the precious metal as a hedge against inflation.
Financial Trading News
For more daily views, news and analysis of the markets also see:
The above comments do not constitute investment advice and neither ETX Capital nor Clean Financial accept any responsibility for any use that may be made of them. Any prices or data are indicative and subject to change without notice; its accuracy is not guaranteed and should not be relied on.
ETX Capital >>
"With ETX Capital you get all the normal advantages of Spread Betting plus..." >> read
ETX Capital review.
Risk Warning: As a small percentage of the total contract value is required as deposit, your profit or loss can rapidly exceed that deposit. Seek advice if you don't fully understand the risks. Spread bets and CFDs carry high risk and are not suitable for everyone.
Article provided / approved by ETX Capital which is the trading name of Monecor (London) Limited, company number 00851820. Monecor (London) Ltd is authorised and regulated by the Financial Services Authority, registration number 124721.
'Crude Oil Spread Betting Markets Rise on Hopes of Eurozone Debt Crisis Resolution' edited by ETX Capital, updated 06-Dec-11
Related Articles:
Financial Trading Review, updated 22-May-12
The daily trading review of the key UK, European and US markets as well as a quick review of the forex and commodities markets. In the last trading session we saw...read article: Financial Trading Review.
Financial Markets Trading Review, updated 21-May-12
Financial Markets Trading Review - the regular trading review of the main UK, US and European markets. There's also a quick look at the commodities and forex markets as well as...read article: Financial Markets Trading Review.
Financial Trading Review Index - an index of financial trading reviews, with each review covering the forex and commodities markets as well as the main UK, US and European markets.
Q) Average Trading Results?
A) Get free trading tips, offers, price updates, important news and more! All Free - Click here!
Risk Warning:
Please note that spread betting and CFD trading carry a high level of risk to your capital. You can lose more than your initial deposit. These products may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.
