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Business news: Markets rebound, manufacturing increases

By Jenny McCall

13:51, 1 December 2021

Industrial engineers in hard hats discuss project
UK manufacturing activity increases to three-month high in November – Photo: Shutterstock

Key points

  • UK manufacturing activity increased to a three-month high in November, but the spectres of soaring costs and struggling supply chains continued to loom large.
  • Eurozone manufacturing activity stabilised in November following several months of slowing growth, a survey of purchasing managers showed. However, higher factory gate prices suggest consumer inflation has further to rise, a sign unlikely to ease the concerns of policymakers at the European Central Bank.
  • The Confederation of British Industry (CBI) announced today that private sector activity in the UK has climbed in the three months to November despite chronic supply chain anxieties. The CBI Growth Indicator rose 32% over the last quarter compared to 29% in the previous three months.
  • Forecasts by asset manager Schroders has shown that the global economy is expected to continue on a path of recovery during 2022 with equities in both the US and Europe set for growth

Business and economic news

Indian equity indices ended higher Wednesday boosted by economic data that assuaged coronavirus concerns and restored risk appetite.

According to data published by Destatis, German retail data fell in October. The data showed that turnover – adjusted for price increases – fell 0.3% on the previous month.

Markets

Stocks: European share futures rose Wednesday as the markets took back some of the previous days loses. US futures pointed to a higher open.

Oil: Brent crude is up more than 2% to around $71 per barrel while West Texas Intermediate rose 1.5% at almost $68 per barrel.

Gold: The Covid-19 Omicron variant continues to boost gold’s appeal. The precious metal is up Wednesday.

GBP/USD

1.29 Price
+0.060% 1D Chg, %
Long position overnight fee -0.0046%
Short position overnight fee -0.0036%
Overnight fee time 21:00 (UTC)
Spread 0.00013

AUD/USD_zero

0.66 Price
-0.680% 1D Chg, %
Long position overnight fee -0.0066%
Short position overnight fee -0.0016%
Overnight fee time 21:00 (UTC)
Spread 0.00006

AUD/USD

0.66 Price
-0.680% 1D Chg, %
Long position overnight fee -0.0066%
Short position overnight fee -0.0016%
Overnight fee time 21:00 (UTC)
Spread 0.00006

EUR/USD

1.09 Price
+0.000% 1D Chg, %
Long position overnight fee -0.0087%
Short position overnight fee 0.0005%
Overnight fee time 21:00 (UTC)
Spread 0.00006

Forex:  Russian rouble firmed past 74 against the dollar on Wednesday after hitting a more than one-week high.

Crypto: Bitcoin was down 1.11% today and Ethereum was up 2.39% in afternoon trading.

What to watch today

Pharmaceutical giant, Merck’s Covid-19 pill Molnupiravir has been recommended for emergency by a US Food and Drug Administration (FDA) advisory committee. The FDA will now decide whether to follow the recommendation. Merck shares are flat in pre-market trading.

Read more: German retail sales fall as higher prices weigh

Markets in this article

BTC/USD
Bitcoin / USD
66783.60 USD
-970.9 -1.430%
ETH/USD
Ethereum / USD
3448.69 USD
-46.99 -1.340%
Gold
Gold
2387.80 USD
-12.94 -0.540%
MRK
Merck - USD
125.70 USD
0.06 +0.050%
Oil - Crude
Crude Oil
78.214 USD
-0.448 -0.570%

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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.
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