Brent futures slipped to a fresh four year low throughout today’s trading session, on track to close lower for a fourth straight day as market participants bet on OPEC holding production levels unchanged, which as expected they did. After rallying towards the end of last week on positive macro data the global benchmark has lost almost 6% this week and remains on track to add another week of bearish prices, having posted losses in eight out of the last nine weeks and breaching $75/bbl for the first time since September 2010.
With US markets closed today for Thanksgiving trading activity across commodities and equities has been relatively thin, however, encouraging data released from the eurozone, notably Germany’s unemployment change which fell -14K against expectations of a smaller -1K decline, propelled benchmark equity indices higher. GfK consumer confidence also came in better than expected, at 8.7 in December from 8.5 the previous month. The DAX, CAC and London indices posted steady gains throughout the session, supported around yesterday’s closing levels with the DAX in particular set to close higher for the eleventh straight session.
In other news, European Commission President, Jean-Claude Juncker survived a vote of no confidence in the European Parliament by a substantial margin at 461 votes to 101. The tumultuous start to the newly elected President’s time in office do little to increase investor’s confidence in the region with market participants looking forward to tomorrow’s release of eurozone unemployment and CPI data while the coming week will see eurozone manufacturing PMI data as well as the ECB rate decision later on.
Spot gold prices declined as much as one percent today as early intraday losses saw the yellow metal trade down to $1,185/oz. Most of lost ground was quickly recovered however, as investors took advantage of the buying opportunity amid uncertainty surrounding the outcome of the OPEC meeting.