Market Analysis – November 2019
At the end of November, several major global markets closed in positive territory. However, some indices edged away from previous highs in the month as doubts set in over the outlook for signing a deal to ease US-China trade tensions.
In the UK, at the end of the month, the FTSE 100 fell back from a near four-month high, as trade-sensitive stocks fell on concerns the US ratification of a law backing Hong Kong protesters would hinder progress made in trade talks. Despite downbeat trading on Black Friday, after a poll showed the Conservative Party’s lead over the opposition narrowed ahead of the 12 December election, the mid-caps enjoyed a third straight month of gains (FTSE 250). The blue-chip index also posted monthly gains for the eighth month this year.
In the US, trading volumes were low at month end, with Wall Street working a half-day session after Thanksgiving. Stocks on Wall Street slipped after China warned it would take firm counter measures against President Trump’s decision to ratify the bill backing protesters.
On the foreign exchanges, sterling closed the month at $1.29 against the US dollar. The euro closed at €1.17 against sterling and at $1.10 against the US dollar.
Gold is currently trading at around $1,463.60 a troy ounce, a loss of 3.23% on the month, posting its biggest monthly decline of the year as investors sought clarity on the trade front. Brent crude is currently trading at around $62.42 a barrel, a gain of 03.67% on the month. Oil prices have held firm recently, on the understanding that Saudi Arabia was willing to extend the current production quota into 2020. However, oil prices fell at the end of November on rumours that OPEC’s (Organization of the Petroleum Exporting Countries) leading members are unwilling to deepen output cuts. December meetings will provide further clarity.
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