European shares fell on Friday, marking four successive days of losses as the German DAX fell beneath 10,710, its lowest since November 16. Stocks in the UK dropped with the FTSE 100 falling to 6240, its lowest since November 24.
Markets are still reeling in the aftermath of a very underwhelming ECB meeting. The euro having moved from near multi-year lows to a one-month high in the space of one day has meant investors have had to quickly reassess their outlook for European stocks given the reduced export-advantage.
Whether euro strength and dollar weakness can extend further will be determined, in the short-term at least by the US unemployment report. Consensus expectations are for 201k jobs created in November, a significant dip from the 271k created in October with wage growth expected to moderate to 0.2% MoM. It’d probably take a jobs number under 100k and no wage growth for the Fed not to hike in December, but anything below expectations could see the dollar extend yesterday’s weakness.
House builders are atop the FTSE 100 after a positive outlook from Berkeley Group Hldgs (L:BKGH) carried its shares over 7% higher. Dollar weakness has helped commodities rebound providing support for mining companies with Anglo American (L:AAL) a top riser despite reports it could slash its dividend.
Oil prices are higher for a second day leading into today’s OPEC meeting in which no output cut is expected to be announced.
US stocks look set for a higher open on Friday. US markets are enthused by the potentially more favourable scenario of foreign earnings-boosting dollar weakness despite an imminent rate hike.
USA pre-opening levels
S&P 500: 11 points higher at 2,060
Dow Jones: 86 points higher at 17,563
Nasdaq 100: 18 points higher at 4,624
DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.
No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.