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 Mid-day: Wall Street rallies after Wednesday’s sell-off

By Joseph Toppe

17:11, 2 December 2021

Wall Street
Wall Street - Photo: Shutterstock

US shares are up on Thursday following yesterday’s drop and the first recorded American case of the Covid-19 variant Omicron.

Halfway through the session, the Dow Jones Industrial Average was up around 620 points, the S&P 500 was more than 1.2% higher, the Nasdaq Composite jumped 0.5% and the small-cap benchmark Russell 2000 improved 1.5%.

At the close of Wednesday trading, the Dow Jones Industrial Average dropped 461.68 points to 34,022.04, after being up more than 520 points at the high of the day.

The S&P 500 lost nearly 1.2% to end at 4,513.04 and the Nasdaq Composite dropped 1.8% to 15,254.05 after rising as much as 1.8% earlier in the session.

Winners and losers: Travel stock bounces amid Omicron fears

Shares for Boeing are up 5% following China’s decision to return the 737 MAX to service, helping the Dow to its session gains, while shares for rival Lockheed Martin are up 1.36%.

Stocks related to travel are recovering from Wednesday’s Omicron scare as shares for Delta Airlines are up 4%, shares for Hilton Worldwide are 3.9% higher and shares for Norwegian Cruise Lines went up 5%.

In tech stocks, shares of Apple are off by 2% following reports there is low demand for the iPhone this holiday season.

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Oil: Crude prices pop on OPEC decision

Crude-oil futures traded higher on Thursday after OPEC’s decision to rollover their current policy and raise monthly overall production by 400,000 barrels per day in January.

HK50

19,471.80 Price
+0.200% 1D Chg, %
Long position overnight fee -0.0223%
Short position overnight fee 0.0004%
Overnight fee time 22:00 (UTC)
Spread 30.0

US100

20,408.80 Price
-2.240% 1D Chg, %
Long position overnight fee -0.0242%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 7.0

US30

43,436.60 Price
-0.710% 1D Chg, %
Long position overnight fee -0.0242%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 11.0

DE40

19,240.60 Price
+0.100% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee -0.0022%
Overnight fee time 22:00 (UTC)
Spread 8.0

West Texas Intermediate crude for January delivery was up $1.15, or 1.8%, at $66.72 a barrel on the New York Mercantile Exchange after trading as low as $62.43.

February Brent crude, the global benchmark, jumped 97 cents, or 1.4%, at $69.84 a barrel on ICE Futures Europe, following a 0.5% decline yesterday and a 5.5% tumble on Tuesday.

Gold: Up and down week continues

After finishing higher yesterday, gold futures for February delivery were down 0.9% on Thursday to trade at $1,768.30 an ounce.

Crypto: Monero flip-flops from Wednesday

While most digital assets wobbled yesterday, Monero remained in decline until today, going up 3.95%, while Bitcoin is down 0.73%, Ethereum is 1.58% lower and Litecoin is down 0.95%

Forex: Yields fall for third straight day

On Thursday, one US dollar equals 74.93 of the Indian Rupee, 13.68 of the Turkish lira, 0.88 of the Euro, and 1.28 of the Canadian dollar.

The yield on the benchmark 10-year Treasury note edged down to 1.444%, declining for a third day.

Read more: Pfizer stock forecast: can the momentum continue in 2022?

Markets in this article

AAPL
Apple Inc (Extended Hours)
225.07 USD
-2.8 -1.230%
BCH/BTC
Bitcoin Cash / Bitcoin
0.00500 USD
-0.00037 -7.130%
BA
Boeing Co (Extended Hours)
140.15 USD
1.58 +1.140%
BA
Boeing Co (Extended Hours)
140.15 USD
1.58 +1.140%
DAL
Delta Air Lines Inc (Extended Hours)
64.25 USD
-0.65 -1.000%

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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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