Europe Stocks Head Higher After Record Breaking US Session
Fiona Cincotta November 25, 2020 8:24 AM
After a record setting session in the US, EU stocks are heading broadly higher, although the pace of gains suggest that the risk rally is easing slightly
After a record setting session in the US, EU stocks are heading broadly higher, although the pace of gains suggest that the risk rally is easing slightly. Vaccine optimism, EU governments starting to ease lockdown restrictions and more US political clarity have driven stocks firmly higher across the start of the week. However, investors are now looking ahead to a slew of US data due later today for further cues ahead of the Thanksgiving break.
Today UK Chancellor Rishi Sunak’s one year spending review will be in focus. There are suggestions that the foreign aid budget will be cut in addition to a public sector pay freeze, which is likely to be met with a frosty reaction. More funds are also expected to be allocated to helping those get back into the labour market after the covid culling.
Oil prices continue to bound higher focusing on the prospect of a viable vaccine improving future demand, whilst shrugging off near term concerns of building crude supplies. US crude inventories rose by 3.8 million barrels last week according to the API, EIA data is due later today.
Looking ahead there are several key US economic reports that will be released, including GDP, jobless claims and durable goods which could provide plenty of volatility for trading opportunities.
The FTSE is edging higher after surging northwards earlier in the month. A break over resistance at 6510 could see the FTSE power higher towards resistance at 6670. On the flip side a break below 6300 a level which has offered support across the month could see FTSE head towards support at 6050 200 day sma.
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