CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Established in 1974
Clients across 156 countries
15,000 markets worldwide

Markets volatile despite holidays

As much of the Western world stops to observe Remembrance Day today, we were always likely to see lower volumes in trade to account for the US, Canadian and French public holidays. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
An Alibaba office
Source: Bloomberg

However, the existence of lower volumes has done little to stand in the way of price action, with volatility relatively high as reflected by the strong UK session and subsequent selloff at the open of US markets.

Chinese economics are back on the agenda once more today, with yet another dampener in the form of disappointing industrial production and fixed asset investment numbers. However, the one saving grace today was retail sales, which saw a marginal rise in October on the same day that Alibaba set new all-time records for ‘Singles Day’ sales, far surpassing last year’s total of $9.3 billion. Coming in the week that Chinese trade data fell once more, the importance of domestic consumption should not be understated for its role in pulling the Chinese economy out of this slowdown.

UK jobs data provided somewhat mixed signals, with both the claimant count and average earnings undershooting to dampen the positive mood seen after the unemployment rate fell to 5.3%; the lowest level since Spring 2008. While markets will see today’s fall in unemployment as a key factor determining the Bank of England’s rate hike timetable, the problem has not been the jobs market and while inflation continues to flounder, we are unlikely to see a move in the coming months.

AB InBev moved a step closer to a historic takeover of SABMiller today, with the agreement to sell SABMiller’s stake in MillerCoors. The resulting mega brewer would be head and shoulders above any other firm in the sector, and this is questionable in terms of the impact it would have upon competition. However, given that SABMiller has focused its efforts into Latin America and Africa, this is arguably a deal which would benefit shareholders rather than simply management.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.