All the day’s economic and financial news, as the Chinese stock market drops again but cryptocurrencies keep rallying
European markets end lower
US markets may be hitting new highs but it is a more downbeat picture in Europe.
Dollar weakness lifting the euro and the pound has hit the main European markets, while Wall Street is benefiting from the currency movements and investor hopes that the Republicans are making progress with their tax returns. The final scores in Europe showed:
- The FTSE 100 finished down 25.74 points or 0.35% lower at 7383.90
- Germany’s Dax dipped 0.46% to 13,000.20
- France’s Cac closed down 0.56% at 5360.09
- Italy’s FTSE MIB fell 1.07% to 22,176.70
- But Spain’s Ibex edged up 0.1% to 10,063.1
- In Greece, the Athens market added 0.17% to 724.39
On Wall Street, the Dow Jones Industrial Average is currently up 26 points or 0.11%.
And bitcoin is 2.5% better at $9509.
On that note, it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow.
Oil lower ahead of Opec meeting
Oil is on the slide ahead of this Thursday’s meeting of Opec, despite talk that the producers will extend their output cut to try and curb oversupply and protect the price. David Madden at CMC Markets says:
WTI and Brent Crude oil are in the red today after having a positive run recently ahead of the OPEC meeting on Thursday. There is speculation that major oil producers will extend the oil production cut until the end of 2018. Some dealers feel a lot of that is already priced in and are exiting their long positions ahead of the meeting in Vienna.
The US shale producers will be paying close attention to OPEC’s decision, as a surge in the energy market could prompt higher production in the shale sector – which could counteract OPEC’s decision.
Brent crude is currently down 0.8% at $63.33 a barrel while West Texas Intermediate is 2% lower at $57.7.
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More on the markets. Chris Beauchamp, chief market analyst at IG, said:
Another day, another record high in the Dow Jones, which is playing catch-up with the S&P 500 and Nasdaq after those indices hit fresh records last week. Risk appetite remains healthy in the US but subdued in the UK and Europe, and once again it is strength in the home currencies arising from dollar weakness that is helping to stifle what looked like a strong session earlier in the day. The other big worry, particularly for the FTSE 100’s mining contingent, is a notable tightening of financial conditions in China; while rising bond yields might not seem like a reason to worry, a hit to corporate profits could feed through to the broader economy and thus raise questions about demand for raw materials in 2018. The great mining rally has recovered from its wobble in the first half of the year, but assuming demand remains healthy this weakness could be a chance to pick up some big miners on the cheap.
US stocks are back to normal today, with the recovery from Thanksgiving overindulgence complete. Tax reform looks a bit less of a done deal today, and it is strange to see the market so blissfully unconcerned. Perhaps it is the thought of a festive rally into year-end that is keeping them stable, or perhaps they’re hoping Mr Trump will pull a rabbit out of the hat. Either way, as we head into the final month of the year a sudden pullback due to tax reform worries offers the dip-buyers their best hope.