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Morning Markets Report – Monday 22nd November 2021

Major UK stocks continued to lose ground on Friday with further concerns over the threat of higher interest rates

Risk appetite dipped sharply ahead of Friday’s New York open with markets taking fright over European coronavirus developments. There was speculation that the Federal Reserve would have to taper bond purchases at a faster rate.

Global bourses declined sharply, although sentiment stabilised later in the US session.

US bond yields dipped sharply on risk elements before recovering from intra-day lows.

The Euro came under sustained pressure with EUR/USD lows at fresh 16-month lows at 1.1250 before a slight recovery. The dollar posted notable gains on the day with fresh 16-month highs with an element of defensive demand.

The Swiss franc strengthened sharply with EUR/CHF below 1.0500. Sterling was able to post net gains on expectations over a Bank of England rate hike.

Commodity currencies were hurt by US dollar gains, although sentiment held relatively firm. Oil prices declined sharply amid concerns that European coronavirus restrictions will undermine demand. Precious metals were hurt by a stronger US dollar and lost ground.

Cryptocurrencies posted net gains over the weekend before sliding in Asia amid volatile trading.

Euro-zone equities were unsettled by renewed concerns over coronavirus developments as fresh restrictions were imposed and the global risk tone was also less confident. Lower oil prices also sapped confidence.

The German DAX index declined 0.4% with a 0.6% retreat for the Eurostoxx 50 index.

Major UK stocks continued to lose ground on Friday with further concerns over the threat of higher interest rates with selling pressure amplified by a slide in oil prices and reservations over coronavirus developments. The FTSE 100 index losses were, however, held to 0.45%.

Wall Street stocks lost ground on Friday with reservations that stronger inflation pressures would force the Federal Reserve to tighten monetary policy at a faster rate. Optimism over earnings did cushion major indices with a 0.15% retreat for the S&P 500 index.

US futures edged higher on Monday and Asian markets held steady.

Japan’s Nikkei 225 index posted a slight 0.1% advance while the Australian ASX index retreated 0.6% amid reservations over commodity prices.

China’s Shanghai index posted a 0.6% gain, but Hong Kong stocks declined again with a 0.5% retreat in the Hang Seng index in late trading.


Stock to watch today

Ocacdo shares have been out of favour for some time as the price has moved lower within a bearish channel. There have been some signs in recent weeks that a bottom is beginning to form. On Friday we saw the shares break higher from the bearish channel that has contained the price action since February this year. This suggests that we may see a continuation higher in price from current levels. The substantial increase in volume adds further encouragement to buy trades.


CCM Opinion: BUY

Buy between 1800 – 1920p

Stop: 1625p

Target: 2570p

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