The traders who have come in to work this week have been in a better mood so far, unwinding some of Friday’s losses now that quadruple witching contract expiries have come and gone. It appears that after last week’s false start, a Santa Claus Rally has arrived at last which could carry through the next 2-3 weeks. The Dax
and FTSE are up about 1.6-1.8% while US indices are up 0.6-0.8% so far this morning.
Spain’s IBEX has been trailing its peers and trading lower today after PM Rajoy’s party won the populist vote in yesterday’s federal election with 28.7% but failed to capture a majority of the seats in Parliament creating uncertainty over what kind of coalition the country may end up with and how long it could take to put together a new ruling coalition.
In commodity action, Brent Crude broke down below its 2008 low but hasn’t fallen much farther holding above $36.00. Similarly WTI crude oil continues to hang around its own 2008 low and cling to $34.00 support.
Today is pretty quiet for news but tomorrow and Wednesday are busier with a number of GDP reports scheduled to come out before the holidays.
There have been no major corporate announcements so far today.
Significant announcements released overnight include:
UK CBI sales 21 vs street 19 and previous 7
Germany producer prices (2.5%) vs street (2.4%)
Sweden economic tendency 110.1 vs street 106.9
Sweden manufacturing confidence 114.3 vs street 106.1
Sweden consumer confidence 98.7 vs street 95.6
NZ consumer confidence 110.7 vs street 106.0
Upcoming significant announcements include:
There are no major announcements scheduled for North America later today.
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