Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Euro, oil and European shares head for small November gains

Euro, oil and European shares head for small November gains

After a month of market obsessing about US presidential elections and the potential for an economic-growth shattering ‘fiscal cliff’ in the US, European markets are heading for small gains in November.

While US budgetary negotiations have dominated the financial newsflow, markets have also been dictated by efforts to release Greece’s next trance of aid, concerns over conflict in the Middle East and China’s leadership change.

On Friday, ahead of the traditionally quieter month of December, markets were little moved. The FTSE 100 and Eurofirst 300 were both flat, at 5876 and 1122 respectively. Over a V-shaped month for UK stocks – dipping in the middle of November – the UK’s blue chip index is up some 1.5%, with the mid-cap league 1% higher.

The euro moved higher on Friday morning, notching up a 0.3% gain to $1.302, continuing to build on its small gains for the month. The single currency – nowadays a gauge of risk appetite – moved higher against the Japanese yen this morning after the Japanese government approved a stimulus package and data showed an unexpected increase in industrial production.

In India, economists were calling for stimulus measures after the news that the country’s growth rate slowed to 5.3%.

The news from Japan overnight was enough to boost Asian shares, which also benefited from small gains in the US on Thursday. The 0.28% advance on the Dow Jones industrial average – which has fallen nearly 0.6% over the past month – came even as House Speaker John Boehner dashed hopes that lawmakers were getting closer to a budget deal.

The oil price, which has been steadily rising throughout November amid fears over the outcome of violence in Gaza is 0.3% lower today at $110 per barrel, but is nearly where it started 2012, as measured by Brent crude oil futures.

Since the start of 2012, major equity markets are also higher. London’s FTSE 100 is up 5.3%, with the FTSE 250 up 19.3%; the US Dow has gained 6.5%.

The euro is down by 3% so far this year.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter