Weak US retail sales dampen to the market mood
Fiona Cincotta November 18, 2020 8:29 AM
The FTSE is opening on the back foot after a lower close on Wall Street following weaker US retail sales.
The FTSE is opening on the back foot after a lower close on Wall Street following weaker US retail sales. Signs that resurging covid cases and the lack of fiscal stimulus is impacting on the US consumer was enough of an excuse for vaccine optimism to fade and stocks to drift lower.
UK inflation picked up by more than expected in October even as large parts of the country headed back into lockdown. CPI rose 0.7% YoY and 0% MoM beating forecasts of -0.1%. Whilst food, furniture and clothes saw prices rise as summer sales items were replaced by full priced autumn ranges, unsurprisingly leisure activities and transport negatively impacted price growth.
Oil gains capped on OPEC indecision
Oil is holding steady on Wednesday after API data late on Tuesday showed that US crude stockpiles rose by 4.2 million barrels last week, significantly ahead of expectations of 1.7 million barrels. The data came after OPEC+ meeting where no formal agreement was made to reverse its plan to boost output by 2 million barrels a day in January, ahead of a full OPEC meeting at the end of the month. This could cap any gains in oil. The last thing the oil market needs in this lockdown winter will be 2 million more barrels a day of supply.
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