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

US market close: Red ending to US benchmarks’ week

By Joseph Toppe

21:32, 3 December 2021

Wall Street subway station
Wall Street - Photo: Kevin Donovan

The three big US gauges hovered between gains and losses all week until closing Friday in decline.

The Dow Jones Industrial Average sank 60 points, after being down 300 points earlier in the session.

The S&P 500 closed 0.8% lower on Friday, while the Nasdaq Composite ended 1.9% down, ensuring all the major averages recorded a losing week.

Halfway through the session, the Dow Jones Industrial Average was down around 200 points, the S&P 500 was off about 1.5%, while the Nasdaq Composite was 2.8% lower.

For the week, the Nasdaq is saddled with 2.6% loss, the S&P 500 ended down 1.2% and the Dow closed 0.9% lower at the bell.

Winners and losers: Boeing steers Dow lower

A day after the stock was elevated by China’s decision to return the 737 MAX to service, shares for Boeing nosedived 1.9% on Friday, helping the Dow to its 60-point session deficit.

Travel stocks continue to fall in the wake of rising Omicron cases throughout the US. Shares for Las Vegas Sands are off 3.7%, shares for Delta Airlines are down around 1.8% while shares for Carnival sank almost 4%%.

In tech stock, shares for DocuSign crashed 42.2%, after the e-signature software company posted an earnings report on Thursday suggesting growth during the Covid-19 pandemic was slowing.

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Oil: Crude prices extend losing skid to six weeks

While oil futures closed Friday up and down, both the US and global benchmarks are off for the sixth consecutive week.

On Friday, West Texas Intermediate crude for January delivery sank 24 cents, or 0.4%, to settle at $66.26 a barrel on the New York Mercantile Exchange, after touching a high at $69.22.

HK50

19,826.10 Price
-0.090% 1D Chg, %
Long position overnight fee -0.0232%
Short position overnight fee 0.0013%
Overnight fee time 22:00 (UTC)
Spread 5.0

US500

6,065.40 Price
+0.330% 1D Chg, %
Long position overnight fee -0.0243%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 0.5

US100

22,048.10 Price
+0.320% 1D Chg, %
Long position overnight fee -0.0243%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 1.8

DE40

20,293.70 Price
+0.250% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee -0.0022%
Overnight fee time 22:00 (UTC)
Spread 1.5

February Brent crude, the global benchmark, added 21 cents, or 0.3%, to end at $69.88 a barrel on ICE Futures Europe.

Gold: Precious metal wins on Friday, loses on the week

Following yesterday’s decline and their lowest settlement since mid-October, gold futures are higher on Thursday.

Gold futures for February delivery jumped 1.2% to close at $1,783.90 an ounce.

For the week, gold prices based on the most-active contract traded nearly 0.1% lower.

Crypto: Digital assets stay low on Friday

Following a recent timeline of mixed trading, cryptocurrencies are down on Friday.

Bitcoin is off 5.39%, Ethereum is off by 6.45%, while Litecoin is 7.44% lower and Monero is 5.87% in the red.

Forex: Traders hit treasury as shares fall

On Friday, one US dollar equals 6.38 of the Chinese yuan, 112.85 of the Japanese yen, 0.88 of the euro, and 1.28 of the Canadian dollar.

The yield on the 10-year Treasury note went below 1.4%, representing investor concern the US Federal Reserve’s stimulus might signal the start of an economic pushback in 2022.

Read more: Bitcoin losing status as inflation hedge, analysts say

Markets in this article

BCH/BTC
Bitcoin Cash / Bitcoin
0.00519 USD
-0.00002 -0.400%
BA
Boeing Co (Extended Hours)
173.92 USD
0.82 +0.470%
BA
Boeing Co (Extended Hours)
173.92 USD
0.82 +0.470%
CCL
Carnival Corp (Extended Hours)
25.89 USD
0.14 +0.550%
DAL
Delta Air Lines Inc (Extended Hours)
60.90 USD
-0.1 -0.160%

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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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