Angela BarnesThe European Commission released data on Monday revealing economic sentiment in the eurozone for this month, which showed a dip in consumer confidence as Covid-19 continues to impact activity.
The indicator when compared with the previous month dropped 1.1 points to 117.5 in November, a six-month low but in line with market expectations.
There was also a marked decline in consumer confidence (-6.8 vs -4.8 in October), as households said they were concerned about potential new lockdown measures due to rising Covid-19 cases across the continent.
Meanwhile, sentiment among manufacturers hardly changed at 14.1 compared with 14.2 in October.
However, there was an improvement in morale among service providers at 18.4 versus 18.0 in October.
Retail and construction
Morale was also up among retailers at 3.7 in November, compared with 1.9 the previous month. For those in construction, the indicator was at 9.0 points vs 8.6 for the previous period.
The inflation expectation index edged down to 39.3 in November from the 28-year peak of 40.0 in October, according to Trading Economics, while the gauge for selling price expectations among manufacturers climbed to 49.0.
Amongst the largest euro area economies, the economic sentiment indicator fell in Spain (-2.6), the Netherlands (-2.1) and Germany (-1.7).
However, things improved in France (+3.0) and in Italy (+0.9), the data showed.
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Inflation: How Does it Affect Investment Stocks?
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.
