Global Market Report - November 21

Europe

Markets in Europe shrugged off the alarm from Wall Street, with most major indices posting daily percentage gains above 0.5%. The FTSE 100 is back above 7,000 points, while Spain and Italy markets posted 1% gains approaching midday.

Italy is in focus today as the country’s budget is scrutinised by lawmakers. Signs of apparent concessions by the new government have helped the euro, Italian stocks and bonds on Wednesday. So far the feared crisis in Italian public finances has not been played out in debt markets, but the issue of Italy’s debt can always resurface.

An early bounce in the pound was snuffed out by news that October public borrowing was worse than expected.

North America

A day before Thanksgiving, US stock market futures are indicating gains today after a bruising session yesterday. The Dow Jones is expected to rise by 100 points on Wednesday after Tuesday’s 500 point slide, while S&P 500 futures gained 17 points following a loss of nearly 50% in the previous session.

Energy stocks were rattled by a plunge in crude prices yesterday but they are expected to climb back off the floor today if oil rebounds.

US economic data today including reports on durable goods orders, weekly jobless claims, and existing home sales. Durable goods orders are forecast to drop of 2.5% against growth of 0.7% the previous month. The final reading of the University of Michigan sentiment index for November is also due on Wednesday.

In Canada, wholesale trade sales for September are due today and inflation figures for October are due on Friday.

Gap (GPS) and Footlocker (FL) report quarterly earnings after the stock market closes.