UK stocks were slightly softer in early trade on Monday with the FTSE 100 making a new three-day low, falling as lows as 6329. European stocks got off to a decent start to the week with the German DAX making a new three-month high to reach 11,389.
Price action over the past two weeks has confirmed the different predicament the UK stock market finds itself in when compared to Europe because of the looming ECB stimulus. More specifically within Europe, its German stocks which are outperforming. At the same time investors are gobbling up German bonds sending yields on short-term debt further into the negative.
The COP21 climate change conference in Paris is occupying the attention of traders in a quiet session for economic data leading into the big events at the end of the week. It seems likely a market-friendly ‘weak deal’ will get signed where its agreed to tackle climate issues without any specifics on financing and a specific target for emissions.
Shares of WM Morrison Supermarkets PLC (L:MRW) are under pressure as the supermarket faces its quarterly ritual of fighting for its place in the FTSE 100. Third time might not be lucky for Morrisons’ place in the UK benchmark after it survived in the June and September reshuffles. There doesn’t look like there’ll be another ‘Weir Group (L:WEIR) situation’ where another listing loses a lot of market cap just prior to the promotions and demotions are decided.
US stocks look to start mixed as they come back on line for a full week of trading following a week broken up by the Thanksgiving national holiday.
USA pre-opening levels
S&P 500: 1 point lower at 2,089
Dow Jones: 9 points higher at 17,807
Nasdaq 100: 1 point higher at 4,681
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