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With much of Europe out of action already, volumes are thinner than the spread on Scrooge’s Christmas table. However the Santa Rally did its work and markets look a lot healthier than they did just a week ago, even if the FTSE 100 is still down on the year and lagging behind the DAX and the Dow Jones.
Oil is finishing up on a weak note before Christmas, as the Saudi comments from earlier in the week continue to weigh on prices. However the good figures from the US yesterday have allowed markets to end on a good note before everyone takes off for turkey and party games.
Last night’s record highs in the US were greeted with cheers, but Dow watchers should be concerned that the Transportation index is still lagging behind, providing one sour note in an otherwise cheery prospect for year end. Light volumes should provide an opportunity for another push higher, as the prospect of a third day of record highs is too tempting to pass up, especially given the shortened session in the US. Ahead of the open, we expect the Dow to open around 20 points higher, at 18,042.