A combination of US Thanksgiving holiday and a crucial OPEC meeting

Thursday, November 27, 2014

The US markets remain closed today for Thanksgiving holiday, thus trading volumes could be thin throughout the session. The release of German unemployment rate and GfK consumer confidence data could draw investors’ attention. Furthermore, market participants will be keeping an eye on Eurozone’s business climate indicator and consumer confidence for November. The euro remains under pressure, trading below 1.25 against the dollar, while support holds near November’s low at 1.2360.

EURUSD spot

EURUSD Curncy (EUR-USD X-RATE)   2014-11-27 09-03-39

Asian equity markets extended losses overnight, following the recent tepid economic data. The Nikkei index plunged over 130 points (-0.78%) to retest 17,250, while the Hang Seng index slid lower by 107 points (-0.45%) towards 24,000.

German Chancellor Angela Merkel signalled she’s ready for a long confrontation with Russian President Vladimir Putin over Ukraine, according to Bloomberg. As pro-Russian separatists and government forces battle in Ukraine’s east region, Germany’s goal is keeping the former Soviet republic sovereign and whole, Merkel reported.  

Today, the main focus will switch to the OPEC meeting in Vienna as OPEC officials gather to discuss about possible production cuts. Saudi Arabia’s oil minister Ali Al-Naimi said the cartel will have a unified position at summit. According to Bloomberg, the recent decline in crude oil prices is now affecting banks as well. Barclays and Wells Fargo face large potential losses on a USD 850 mln loan to help fund the merger of two US-oil based companies.

WTI front month futures plunge towards $72 per barrel

CLF5 Comdty (WTI CRUDE FUTURE  J 2014-11-27 09-04-50

Brent front month futures hit a new 4-year low, heading towards $75/barrel

COF5 Comdty (BRENT CRUDE FUTR  J 2014-11-27 09-05-54

 

Events for today:

US Market Holiday

0855

DE

Nov

Unemployment Rate

1000

EZ

Nov

Bus Climate & Con Sentiment

1200

DE

Dec

GfK Consumer Confidence

2330

JP

Oct

CPI

All times UK Local Time

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