Global Market Report - November 26

Europe

Currency markets did not overreact to news over the weekend that EU leaders had approved Theresa May’s Brexit deal. The pound moved higher in morning trading but the exchange rate remained at $1.28. Likewise, sterling is trading at €1.13. There are plenty of hurdles in the way before a deal can be sealed, not least the UK Parliament, where a vote looms early next month.

The FTSE 100 managed a move above 7,000 points after recent weakness. The top riser and the top faller both moved in the region of 6%: Mediclinic (MDC) was the biggest gainer and manufacturing turnaround specialist Melrose Industries (MRO) was the largest faller.

Bank of England Governor Mark Carney is in conversation tonight with former Federal Reserve chairman Alan Greenspan, famous for his comment on the “irrational exuberance” of stock markets during the dotcom boom.

Markets in the Eurozone were up by over 1% approaching midday after a possible breakthrough in Italian budget talks.

North America

Dow futures are suggesting a 200-point rise at the open on Monday as the stock market returns to a normal timetable. The rebound is in part due to a recovery in crude oil prices after the recent rout.

Traders returning from the Thanksgiving break will have to digest a range of new economic releases this week, including November consumer confidence on Tuesday, the second reading of GDP on Wednesday, and PCE data and Federal Reserve minutes on Thursday. In Canada, GDP data will be in view on Friday.

Then the G20 Summit in Buenos Aires, Argentina, kicks off at the end of the week, with the trade dispute between the US and China likely to dominate proceedings.