Market News & Analysis

Top Story

European shares bounce higher on Chinese data and Black Friday

The sales bonanza that is Black Friday and some unexpectedly strong Chinese PMI data helped lift the FTSE 0.7% this morning. Although Black Friday figures for the UK have not been published yet US numbers are already showing record highs with digital shopping bouncing another 14%. Good news for retailers is that the shopping fest will spill into this week under the catchy new label of Cyber Monday.

US-China relations could become frostier 
The two sets of Chinese PMI data – the state numbers compiled by the National Bureau of Statistics tracking large enterprises and the private Caixin data focusing more on smaller and medium sized businesses – unexpectedly showed growth in both segments of manufacturing. As the US-China trade deal seemingly teeters in a limbo any signs that the country’s industrial growth has not been excessively damaged by the dispute is being welcomed by the markets both in Asia and in Europe. In London, unsurprisingly, miners led the way higher with Rio Tinto, Glencore and BHP Group gaining the most ground.

At the other end of the index shares in online retail grocer Ocado dipped as investors took some profits off the table following last week’s rally prompted by a deal with Japanese chain Aeon. 

However, relations between the US and China are about to get frostier after China cancelled a US navy visit to Hong Kong and introduced sanctions on several US organizations which it blames for getting involved in Hong Kong protests. This could hit stocks across the board because it is likely to make a trade deal even more elusive. 

UK competition watchdog has Alphabet in its sights 
When the US markets open later today Google owner Alphabet will be in focus after the UK competition watchdog said it was scrutinizing the firm’s purchase of big-data firm Looker Data Sciences. Shares have already dipped during a shorter trading day Friday, closing down 0.61%.



Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.