Daily commentary – European and US stock markets 27 November 2013

Daily commentary - European and US stock markets 27 November
Daily commentary – European and US stock markets 27 November

European markets

European stock markets opened higher this morning, supported further by positive German Consumer Confidence data which revealed an increase to 7.4, opposite forecasts for the same figure as last month’s result. Germany’s DAX30 was up by 0.22% to 9,310.02, France’s CAC40 was gaining 0.13% to 4,283.07, while the UK’s FTSE100 was climbing by 0.17% to 6,647.78 at 10:00 GMT. German mail delivery operator Deutsche Post AG, along with building materials company HeidelbergCement AG, were  the top earners in the DAX30, gaining 1.63% and 1,76%, respectively, at the time of writing. France’s mass media and telecommunications company Vivendi SA was the biggest gainer in the CAC40: by 1.75%, while hotel group Accor SA was the worst performer within the index, being down by 3.58%. The UK’s FTSE100 notable mover this morning was contract food service company Compass Group PLC, whose shares were up by 3.73% to 961.00p.


US stock markets

US stock indices have been making history in the past two weeks, with both the Dow and the S&P500 reaching milestone levels for the first time: above 16,000 and 1,800, respectively. During yesterday’s session, the Nasdaq Compsoite also joined the record-breaking club and closed above the 4,000 barrier for the first time in 13 years.

The Dow and the S&P500 registered minimal chart movements, as mixed data from the US failed to give them a boost, and the broader S&P500 ended at the foot of its record level.

A report released by the US Census Bureau showed that the building permits for new housing in the country has reached 1.03 million in October, or 60,000 more than the previous month, marking the highest level since 2008. Analysts’ forecasts were for a decrease to 930,000.

However, a separate report dampened the good news on building Permits, as it revealed that the US Consumer Confidence for November has dropped unexpectedly to a 7-month low. The index fell to 70.4, compared to a result of 72.4 in the previous month, indicating that Americans look more pessimistically upon the economic growth opportunities. Analysts’ expectations were for figures close to those in October, around 72.9.

The S&P500 gained an absolute minimum, or less than 1 point, to close at 1,802.75, after reporting an increase by 0.3% during the intraday trading. Three out of the ten industries within the index registered increases, with top performers being the technology companies, which added over 0.4%.


The Dow also ended the session without a significant change at 16,072.80 points. The technological Nasdaq Composite increased by 0.6% to 4,017.745 points: its highest closing level since September 2000. The index has gained 261% since reaching its bottom in October 2002, when it sank to 1,114.11 points.

Among the winners in yesterday’s trading was Apple Inc., whose shares rose 1.8% to $533.40, reaching its highest level since January. Analysts commented that the launch of iPhone sales from China Mobile will boost the company’s profits for 2014. Tiffany & Co. also reported an increase, as it climbed by the impressive 8.7% to the record $88.02 per share; this is the largest rise in the S&P500 for the session.


Looking further in the day, US Durable Goods Orders for October, along with the country’s Initial Jobless Claims, are set to capture investors’ attention. As for the week, US stock market trading is expected to be below the usual volumes this week due to the Thanksgiving holiday tomorrow. On the last Friday of November, also known as Black Friday, stock markets will be with limited working hours. Black Friday is the unofficial start of the holiday shopping season in the US.


Source: dfmarkets.co.uk


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