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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

17:45 · 9 November 2018

Stocks head lower at the end of the week, GBP weakens on GDP and minister departure

Friday’s stock trading was marked by declines across all continents. Shares in Asia, especially Chinese ones, pushed lower on the final trading day of the week as more signs of slowdown in China start to surface. Downbeat moods were also seen during the European trading hours with only Dutch and Portuguese blue chips managing to finish the day slightly higher. However, it should be noted that DAX futures are trading higher on the day at press time.

Session on Wall Street was also launched lower with tech sector weighting on indices valuations. Upbeat earnings reports from companies like Walt Disney did little to ease downward pressures. The same can be said about smaller-than-expected drop in UoM consumer sentiment gauge. Yesterday’s Fed reiteration of will to continue with gradual rate hikes lifted the US dollar.

Speaking of currencies, the British pound is one of the worst performing majors today. The lacklustre structure of the Q3 GDP report could have played its toll while declines accelerated in the afternoon once news of transportation minister resignation over the Brexit deal surfaced. As risk-off mode caused stocks to plummet no one should be surprised that safe haven currencies like JPY or CHF can be found among G10 leaders today. Along with the rise of the USD emerging markets currencies take a step back today with ZAR being the biggest underperformer.

A risk-off mode is also taking its toll on the commodity market. Both grades of crude oil decline around 1% at press time. Steep declines are seen on the precious and industrial metals markets as well. Yesterday’s WASDE report lifted some grains, like corn or wheat, but agricultural commodities are generally pulling back on Friday. Although, there is one commodity that is experiencing huge price gains today and it is natural gas. This energy commodity is continuing its stellar rally started at the beginning of September extending 2-month gain to over 35%.

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