Global concerns about demand cause market declines
Traders are starting the week on a negative note due to concerns about global demand, causing declines in stock markets.
(Video summary)
Global demand concerns
Traders are starting the week on a negative note due to concerns about global demand, causing declines in stock markets.
Oil is currently at its lowest in four months, which is causing a drop in shares in London. In addition, retail sales for the month of October have been lower than expected. Despite this, volatility is down, indicating that there is a higher appetite for risk in the market.
However, experts suggest that Friday's trading may not be particularly optimistic. Money continues to be invested in the equity markets, with London and Germany showing potential gains, while the French CAC 40 is experiencing negative trading.
In the Asia-Pacific markets, the Nikkei 225 has seen gains, but the Hang Seng and the S&P 500 have suffered losses.
In the US, there were losses on the Dow, but gains on the S&P 500 and NASDAQ composite.
One company that saw a 15% increase in traded shares is Gap. This rise was due to better-than-expected earnings. However, the company remains cautious about the future, as concerns about consumer affordability persist.
UK retail sales
Other notable events include a drop in British retail sales volume for October, attributed to reduced footfall and wet weather. This has also led to a decline in the value of the British pound against the US dollar and the euro.
Additionally, producer prices in Canada are expected to fall, while raw material prices are expected to rise. US building permits and housing starts are also anticipated to decline.
FOMC minutes
Next week, the trading market is expected to experience volatility due to the release of the FOMC minutes and flash eurozone consumer confidence.
The European Central Bank (ECB) is facing challenges related to inflation and weak economic growth. Oil prices are also a concern, with Brent experiencing a significant slump.
On a positive note, gold continues to rise and experts predict that it may reach $2,000.
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