Decent Recovery After Early Losses
European stock markets are ending the day on a positive note, having recovered from a negative start to the session to grind out a decent return as the day progressed.
The FTSE is on course to end the day back above 6,100, while the DAX has its sight set on 13,000 once again after trending lower over the last week. Broadly speaking, we’re still very much consigned to the summer ranges in Europe and in most cases, we’re still trading around the middle of them.
That’s despite the fact that Covid is wreaking less havoc here than in other parts of the world, although rising new cases in a number of countries is resulting in quarantine measures being applied once again, a huge blow to travel and tourism firms.
We don’t quite have the momentum that indices on the other side of the Atlantic are enjoying, with the S&P and Nasdaq back in record territory. The prospect of a relief deal between Republican’s and Democrats won’t be doing that any harm, with the Fed minutes of interest later in the day.
Oil edges lower ahead of OPEC+ meeting
Oil prices are slipping a little, down around 1% on the day. Brent is trading around $45.50 and WTI $42.50, both still near the upper end of their ranges. This comes as the OPEC+ JMMC meets to discuss compliance with the previously agreed cuts – reported to be more than 95% – as producers start paring the back. No major tweaks are expected but traders will remains alert to any warnings from the group.
Gold slips after failing to hold $2,000
Gold has been slipping thoughout the US trading session after breaking below $1,980 before finding some support around $1,960. This comes after it failed to hold above $2,000 the previous day amnd a little profit taking from the last week’s rebound kicked in. With the US dollar remaining under pressure despite a small rebound today and US real yields below -1%, it’s tough to see the bearish case for gold right now.