Major Global Equities Set For Green Monday

Monday, 26 November: Digesting the news that Theresa May had agreed her Brexit deal with EU chiefs yesterday, London indices started the week off in positive fashion; the FTSE 100 rising over 1% before the first half hour was over (closing +1.20%). The positive sentiment continued over the course of the day, with European counterparts also trading higher. Sterling was relatively unreactive to any Brexit talk, trading modestly higher at the open. May starts her 2-week campaign to persuade Parliament members to sell her agreement before members are expected to vote in mid-December. Away from Brexit talk, much of the FTSE gains were down to oil’s rebound and metal price gains. John Wood Group led the pack at the top of the blue-chip index (+7.62%), although Fresnillo (+4.21%) benefitted as Silver (and Gold) prices stood firmer.

After dropping below $60 a barrel last week, the lowest its been in over a year, brent oil staged a slight rebound, although broker comments kept any bullish comments at bay. One commodities analyst claimed Friday’s selloff may have been too exaggerated, further adding that the oil market remains in the same place as last week. The commodity has been plunging amid a global oversupply, and although OPEC are set to meet next week in Vienna to discuss an output cut, the G20 meeting at the end of this week could put OPEC’s plans in jeopardy. Not only is Donald Trump set to attend, leaders of the world’s two largest oil exporters are also in attendance; the former making his OPEC views on his favourite platform as recently as last week. Brent oil has breached $60/bbl over today, keeping its head afloat at $60.49 at the time of writing.

With “Cyber Monday” following on from “Black Friday”, all in aid of celebrating US Thanksgiving, US markets returned to full trading today after a short day on Friday. Both the Dow Jones and S&P are shrugging off last week’s sell-off, rising more than 1% in similar fashion at the time of writing. Major European indices ended the day higher in what has turned out to be a Green Monday for major global equities.

 

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