CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Business News: Black Friday lasts longer, Biden picks Powell

By Jenny McCall

14:16, 23 November 2021

Santa Claus next to Black Friday sale sign in the UK
Retailers are dragging out Black Friday into a month–long sale – Photo: Shutterstock

Key points

  • November PMI data compiled by IHS Markit and CIPS show private sector firms in the UK experienced the fast increase in input cost inflation in November since at least January 1998.
  • Economic activity in the eurozone accelerated in November after slowing to a six-month low in the previous month, according to the region’s purchasing managers.
  • UK stocks dipped as Covid-19 cases have started to rise again. The FTSE is flat after a brief upswing yesterday. Investors were also looking forward to eurozone and UK PMI data due out later today.
  • US President Joe Biden has nominated incumbent Federal Reserve Chair Jerome Powell to lead the central bank for a second term. Fed Governor Lael Brainard was nominated as Vice Chair.
  • Black Friday is no longer a one-day affair, retailers are dragging out the day when everything goes on sale – for one month.

Business and economic news

  • Aareal Bank is set to be taken over by a private equity partnership, who have valued the German financial services group at just under €1.74bn ($1.96bn).
  • US President Joe Biden announced the US will release 50 million barrels of crude oil from the US Strategic Petroleum Reserve to help cool oil prices in parallel with other major energy consuming nations, including China, India, Japan, Republic of Korea, and the UK.
  • Stocks: The S&P 500 opened lower on Tuesday as rising Treasury yields weighed on major technology stocks.
  • Oil: Oil spot was down 0.18% at $76.61 per barrel. Brent crude was up 0.21% at $79.87
  • Gold: Gold prices fell below $1,800 on Tuesday with expectations US interest rates will rise.
  • Forex: The dollar and bond yields firmed with expectations that US interest rates will rise.
  • Crypto: Bitcoin (BTC) fell 0.61% today and Ethereum (ETC) dropped by 2.28% today.

What to watch today

  • JP Morgan has once again been voted the world’s most systematically important bank, according to a report. BNP Paribas (BNPP) and Goldman Sachs (GS) followed.
  • American Eagle Outfitters (AEO) and Abercrombie & Fitch (ANF) beat revenue estimates today, sales were driven by the return to schools and offices after Covid-19.

Read more:  S&P 500 gainers and losers: No end in sight for the bull market?

Markets in this article

153.64 USD
-2.57 -1.650%
153.64 USD
-2.57 -1.650%
American Eagle Outfitters
19.99 USD
-0.56 -2.740%
American Eagle Outfitters
19.99 USD
-0.56 -2.740%
Oil - Brent
Brent Oil
84.477 USD
-0.047 -0.060%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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