CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Business news: Markets calmer as Tesla shares fall

By Jenny McCall


Updated

European Central Bank headquarters in Frankfurt, Germany
European Central Bank headquarters in Frankfurt, Germany – Photo: Shutterstock.

Key points

  • U.S. stock index futures are higher Monday on expectations the US $1.2trn infrastructure bill will boost big industrial companies
  • Tesla shares fall 7.5% in premarket trading after Twitter users vote for CEO Elon Musk to sell about a tenth of his holdings in the luxury electric vehicle maker.
  • SoftBank slumped after reporting a fiscal second quarter loss Monday, as its Vision Fund unit took a $10bn hit from due to a decline in the share price of its portfolio companies and China's regulatory crackdown on technology firms.
  • Walt Disney announced Monday it will offer a month of Disney+ for $1.99 for a limited period.

Top business and economic news

  • European Union finance ministers to meet Monday discuss inflation and its impact on wages.
  • Former US president Barrick Obama to speak at a climate summit and the UK pledges £290m as talks enter second week.
  • The US House of Representatives passes a $1.2tn spending bill to rebuild the nation’s infrastructure, delivering to the Biden administration a long-awaited legislative victory.

Markets today

  • Stocks: After record highs last week for the Nasdaq and the S&P 500, due to strong earnings reports, US stock index futures are higher to start the week.
  • Oil: Brent crude was up over 4%, alongside US crude oil spot, as markets resovered from the OPEC+ meeting last week. 
  • Gold: Gold gained Monday, climbing back above $1,800 per ounce after the US Federal Reserve (Fed) announced last week that it will begin to scale back on bond purchases.
  • Forex: The US dollar is down 0.12% in early trade.
  • Crypto: Shiba Inu pulls back from a recent rebound. Bitcoin rallied towards its all-time high and rose over 6% today. Ethereum also climbed to new record breaking heights.

What to watch out for today

  • US Consumer inflation expectations: Economists are forecasting a 5.8% increase in October compared to 5.4% reported in September
  • EuroZone Eurogroup Meeting: The meet to be attended by Eurozone finance ministers, is expected to discuss macroeconomic prospects in the region, including inflation and energy prices and uses of digital euro.
  • Scottish Mortgage Investment Trust, the FTSE 100-listed financial services firm, announced a jump in the value of assets under management in its first half.
  • French mining and metallurgy group Eramet confirmed the construction of a lithium plant in Argentina with partner Tsingshan.
  • German consumer and chemical goods manufacturer Henkel has said its earnings for the fiscal year 2021 will be on the low end of previous guidance as it battles rising raw materials costs and ongoing supply issues.

Read more:  Business News: Quiet day for EMEA after last week’s data storm

Markets in this article

BCH/USD
Bitcoin Cash / USD
437.45 USD
-36.85 -7.800%
Oil - Brent
Brent Oil
70.911 USD
-1.366 -1.890%
ERA
Eramet
52.21 USD
0.1 +0.190%
ERA
Eramet
52.21 USD
0.1 +0.190%
ETH/USD
Ethereum / USD
3090.62 USD
-72.98 -2.310%

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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 Capital.com 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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