CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% 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: UK growth faces decline, energy crisis persists

By Jenny McCall

13:25, 22 November 2021

A picture of the United Kingdom economy and financial markets
The UK economy is in focus today - Photo: Shutterstock

Key points

  • The UK economy is in focus today as the Confederation of British Industry announced that economic growth must be delivered across the UK if decades of decline are to be avoided.
  • Swedish telecoms giant Ericsson (ERIC) snapped up Vonage, a US-based cloud communications company, for $6.2bn (£4.6bn).
  • The energy crisis and collapse of several providers continues to cause havoc in the UK. Bulb, Britains seventh-biggest energy supplier, is facing collapse within days, despite last minute talks with the UK government.

Business and economic news

  • Large Swiss bank Julius Baer (BAER) today reported 12% annual growth in assets under management to CHF 484bn, driven by net new money inflows (4.4% annualised).
  • As the US embarks on Thanksgiving week, airlines and airports are preparing for a heavy load of travellers. There are also reports of turkey shortages.
  • Stocks: US stock index futures rose today, driven by recovery in energy and bank stocks. The Dow was up 0.43%; the S&P rose 0.37%; and the Nasdaq was also up 0.34% by midday GMT.
  • Oil: Europe’s rising Covid-19 cases has caused oil prices to fall today. Oil was down to $75.83 per barrel, and Brent fell to $78.71.
  • Gold: Gold eased today, hovering near a two-week low. It was weighed down by expectations of rising inflation and a firmer dollar.
  • Forex: The dollar rose higher today as expectations that the US Fed is contemplating a change to interest rates grew stronger.
  • Crypto: Bitcoin was down 2.60% today, and ethereum was down 3.63% on Monday.

What to watch today

Moving on out: Irish low-cost carrier Ryanair confirmed it will delist its London shares in December. Ryanair, which operates as a group of airlines with a UK subsidiary, said that the volume of trading of its shares on the London Stock Exchange did not justify the costs related to the listing.

Japanese and Indian officials are developing ways to release national reserves of crude oil at the same time as the US and other major economies to dampen prices, Reuters reported today.

Read more: Ericsson signs .3bn deal with Verizon

Markets in this article

Bitcoin / USD
38115.70 USD
1017.6 +2.750%
51.90 USD
-0.58 -1.110%
51.90 USD
-0.58 -1.110%
Ethereum / USD
2058.36 USD
40.41 +2.010%
Julius Baer
43.62 USD
-2.38 -5.190%

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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 on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

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