US Thanksgiving holiday could see muted trading activity

Thursday, November 28, 2013

US markets are closed for Thanksgiving holiday today, so we expect fairly light trading activity across European equity markets. In Asia, the Nikkei index jumped to a 6-year high after surging 1.8% to end at 15727.12 points, while the Hang Seng was eyeing a 3-year high, ending fairly flat on the day at 23789.09 points.  

Energy: IEA head Maria van der Hoeven reported today the oil market is sufficiently supplied even with the prospect of declining crude oil production from Libya. It should be noted that on-going political uncertainty continues to dominate the country, where armed militias continue blockading oil fields and ports. Brent held above $111 per barrel, while WTI oil front month contracts consolidated around the $92 per barrel area.

Gold found some support around the $1,240 level but prices remained close to a 4-1/2-month low as strong US employment data and robust Chicago PMI figures raised concerns of a possible early winding-down of the Fed’s QE programme. Silver is trading below $20 area, at $19.70.

Commodities - Coal: China will tighten approvals for new coal mines, eliminate small and unsafe ones and encourage industry consolidation in a bid to curb vicious competition, according to the China's State Council.

Brazil has raised its benchmark interest rate by 50 basis points to 10%, pushing it into double digits for the first time since March 2012, as the country tries to tackle high inflation. Brazil’s central bank hiked the Selic rate late yesterday for the sixth consecutive time. 

Events for today:

0855

DE

Nov

Unemployment Rate & CPI

1000

EZ

Nov

Business Climate

2330

JP

Oct

CPI

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