Equity markets slid lower in a correction

Tuesday, November 26, 2013

European equity markets retreated on Tuesday, with mixed US economic data failing to provide any support to the markets. CAC, DAX and London fell between 0.11% and 0.87%, while the euro managed to hold above 1.35 against the US dollar.

In the US, building permits climbed higher by 6.2% in October, beating expectations, while the Case Shiller home property index increased 13.3%, above analysts’ estimates. However, consumer confidence declined to 70.4 in November, compared to 72.4 in October.

In London, mining stocks dragged the market lower owing to weaker base metals prices. Anglo America, Fresnillo, Glencore and BHP Billiton fell sharply between 1.8% and 2.7%. Utility stocks also ended down, with Centrica retreating by 1.92%.

Tomorrow, market participants will be keeping an eye on the release of the UK Q3 GDP data, while in the US the main focus will switch to the durable goods and Chicago PMI data as well as weekly jobless claims figures. The University of Michigan/ Thomson Reuters survey will also provide a useful outlook regarding current US economic conditions and prospects. It will be a busy trading session for the equity markets ahead of the US Thanksgiving holiday on Thursday.

 

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