UK markets closed higher on Friday, in a shortened trading session, after robust economic data fuelled optimism that the US economic recovery is gathering pace, overshadowing concerns about the eurozone debt crisis.
Tullow Oil, the top riser on the FTSE 100 index, and BP gained 3.1% and 2.1%, respectively, tracking a rise in crude oil prices.
BG Group advanced 1.0%, after it announced an oil discovery in the North Sea.
Rio Tinto, Xstrata and Antofagasta added between 0.6% and 2.4%, as copper prices rose for the fourth consecutive day.
SABMiller gained 2.2%, after JPMorgan Cazenove reiterated its “Overweight” rating on the stock.
National Grid gained 2.5%, amid speculation that the company is mulling to dispose its UK gas distribution businesses to State Grid Corporation of China.
FTSE 100 surged 1.0% to 5,512.7, while FTSE 250 climbed 0.8% to settle at 9,984.2.
European Trading Review
European markets closed in the positive territory yesterday, as a drop in US weekly jobless claims and improvement in US consumer confidence boosted market sentiment.
Additionally, upbeat comments by German officials about the strength of the domestic economy overshadowed concerns about the European debt crisis.
Banking sector stocks, Banco Comercial Portugues and Banco Espirito Santo surged 7.7% and 14.0%, respectively, following reports that the Portuguese government might recapitalize banks without becoming their shareholder.
Retailer, Metro, gained 0.8%, after the country’s HDE retail association raised their sales turnover expectations for the pre-Christmas period compared to the previous year.
FTSEurofirst 300 index closed marginally higher to 990.4. German DAX Xetra 30 added 0.2% to 5,889.8. French CAC-40 rose marginally to 3,103.1.
US Trading Review
US markets closed mostly higher yesterday, as better-than-expected reading on consumer confidence overshadowed a drop in home prices.
Mead Johnson Nutrition, the top riser on the S&P 500 index, gained 5.8%, after it stated that tests had revealed no presence of potentially fatal bacteria in a batch of the product used by a baby who died.
Casino companies, Las Vegas Sands, MGM Resorts International and Boyd Gaming gained between 1.0% and 9.8%, amid optimism that a US Department of Justice opinion could open more opportunities to online gambling run by states.
MetLife climbed 0.3%, after it announced that it had agreed to sell the bulk of its retail bank deposits business to GE Capital.
However, Sears Holdings slumped 27.2%, after it planned to close 100 to 120 Kmart and Sears stores to reduce costs.
DJIA edged down marginally to close at 12,291.3. NASDAQ inched up 0.3% to settle at 2,625.2. S&P 500 rose marginally to settle at 1,265.4.
Forex Trading Review
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5658, marginally lower against the EUR at €1.1980, and 0.1% lower against the JPY at ¥121.83.
The EUR is trading marginally higher against the USD at $1.3070. Earlier, the EUR was trading lower against the USD amid lingering concerns that Europe’s debt crisis would slow the region’s economic growth.
The EUR is trading 0.1% lower against the JPY at ¥101.70, ahead of sale of Italian bills and bonds today, and amid speculation that Italian business confidence dipped in December, the lowest level in almost two years.
Also in forex spread betting, the WON is trading lower against the USD, after data showed that an index measuring manufacturers’ confidence in South Korea tumbled to a 30-month low in December.
Yesterday, the EUR closed higher against the USD, as demand for riskier assets increased, after reports showed that US consumer confidence rose to 64.5 in December from a revised 55.2 in November, and after German policymakers stated that the country would not slide into a recession next year.
Commodities Trading Review
In Asia, crude oil for February delivery is trading marginally higher at $101.37 per barrel.
Yesterday, crude for February delivery gained 1.7% or $1.66 to $101.34 per barrel, after Iran threatened to cut off shipments through the Strait of Hormuz.
The crude oil spread betting market also gained value, amid expectation of increase in energy demand, after reports showed that US consumer confidence improved to a five-month high and home prices in 20 US cities declined at a slower pace.
Gold for immediate delivery is trading 0.1% lower today, at $1,588.96 per ounce.
Gold for February delivery fell 0.7% or $10.50 to settle at $1,595.50 per ounce yesterday, as demand for the safe haven asset waned, as upbeat US economic data and positive comments from a German official, increased speculation that the global economy is recovering.
Financial Trading News
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'Rising US Consumer Confidence Boosts Crude Oil Spread Betting Market' edited by ETX Capital, updated 28-Dec-11
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