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Business news: Santa Rally coming to town, oil gains

By Jenny McCall

12:42, 6 December 2021

A picture of a money bag with the word GDP and down arrow
CBI revised down its forecast for GDP growth - Photo: Shutterstock

Key points

  • Economic growth forecast cut: The Confederation of British Industry (CBI) revised down its forecast for gross domestic product (GDP) growth, citing rising costs and supply shortages. The CBI is now forecasting 6.9% growth in GDP for 2021 and 5.1% in 2022. This is revised down from its June forecast of 8.2% growth in 2021 and 6.1% growth in 2022.
  • Tech Hit: Technology stocks listed in Hong Kong took a heavy beating on Monday as souring investor sentiment following DiDi Global’s US delisting continued to weigh down the sector.
  • Santa Rally coming to town? Chances of a Santa Rally are still good if you look at the historical data. “Historical data implies that the chance for a Santa Rally is 50:50,” noted Alexander Voigt, founder and CEO at If markets go up in the last few weeks of December, this is typically referred to as a Santa Rally.
  • Oil and Omicron: Oil prices climbed today after losing significant ground last week on fears that new coronavirus variants could lead to restrictions around the world.

Business and economic news

  • Construction grows: Growth in Britain’s construction sector picked up speed in November thanks to an upturn in commercial building projects, purchasing managers in the building industry reported on Monday.
  • The London Stock Exchange Group (LSEG) announced on Monday that it will buy Quantile Group for £274 million ($363.6m). Quantile was founded in 2015 by former Morgan Stanley banker Stephen O’Connor and provides portfolio management services for derivatives traders.


Stocks: It was good news for US and European stocks as futures moved higher today, while Asian stocks lagged. 

Oil:  Oil rallied as Saudi Arabia lifted its crude prices.

Gold: Gold fell on Monday, driven by a stronger dollar and increasing expectations for the US Federal Reserve to reduce its asset purchases at a faster pace amid signs of a tighter labour market.

Oil - Brent

79.65 Price
-1.350% 1D Chg, %
Long position overnight fee 0.0237%
Short position overnight fee -0.0457%
Overnight fee time 21:00 (UTC)
Spread 0.045


27.59 Price
-4.480% 1D Chg, %
Long position overnight fee -0.0208%
Short position overnight fee 0.0126%
Overnight fee time 21:00 (UTC)
Spread 0.020

Natural Gas

2.16 Price
+0.090% 1D Chg, %
Long position overnight fee -0.0733%
Short position overnight fee 0.0514%
Overnight fee time 21:00 (UTC)
Spread 0.0050

Oil - Crude

76.18 Price
-1.540% 1D Chg, %
Long position overnight fee 0.0386%
Short position overnight fee -0.0605%
Overnight fee time 21:00 (UTC)
Spread 0.030

Forex: The dollar rose today against safe-haven currencies, such as the yen and Swiss franc.   

Crypto: Bitcoin was down 1.89% today, and ethereum was down 3.49% today.

What to watch this week

  • The US will release its consumer price inflation data on Friday, and investors are eagerly awaiting results.
  • Eurozone economic growth will be released on Tuesday, and on Friday the UK will report its GDP figures.
  • Australia’s Reserve Bank holds its final monetary policy meeting of the year on Tuesday.

Read more: Will there be a Santa Rally in December 2021?

Markets in this article

Bitcoin / USD
64216.60 USD
-1876.55 -2.840%
Ethereum / USD
3178.97 USD
-199.24 -5.900%
2370.28 USD
-26.6 -1.110%
94.00 USD
-0.16 -0.170%
Oil - Crude
Crude Oil
76.179 USD
-1.19 -1.540%

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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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