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Markets prepare for Black Friday: What to expect this year?

Published 22/11/2023, 11:30
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Investing.com - European markets remain bullish at mid-session -Ibex 35, CAC 40, DAX... - with an eye on Black Friday.

"The important thing becomes the first sales figures of the Holiday Season to measure American consumption, which will not be released until late Friday at the earliest. This means that we are still driven by the underlying bullish inertia in the market since bond yields started to fall at the end of October", explain Bankinter (BME:BKT).

"Therefore, it is most likely that long positions will prevail to get through the long American weekend and that will result in a slight rebound today," confirm these analysts.

"On Thanksgiving Day, tomorrow, Thursday, a new record high in air travel within the US is expected. It is possible that, as we saw yesterday, this will encourage many to reduce some risk positions going into the long weekend, which could weigh on the indices," Link Securities comments.

"In the US, discounting is a tradition that lasts throughout the month of November. Many physical shops start their promotions on Thanksgiving Eve, and online retailers announce significant price cuts on the Monday before Black Friday. US retailers are generally in a better position than their European counterparts. Sales are expected to increase by 3-4% during November and December this year," explains Crédito y Caución.

According to Renta 4 (BME:RTA4), this 3%-4% increase in sales would be "the lowest growth in 5 years and barely +1% in real terms, the weakest since the global financial crisis".

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Translated from Spanish using DeepL.

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