2015 the year of consumer confidence

22 December, 2015

Oil prices remain anchored and are giving consumer confidence a boost. Yesterday saw data across Europe come in better than expected and overnight UK consumer confidence showed a reading of +2, up from +1 in the month of November and higher than expected, but still someway off the highs of earlier in the year. What is remarkable is how this is the first time since the GfK survey started over 40 years ago that the measure has remained in positive territory for an entire calendar year. If ever there was an indication of how tumbling oil prices make consumers feel better about themselves this is it. However, this is not the reason why we are seeing a little bounce in sterling or why equities are expected to open firmly in the black this morning. These moves are more a reflection of dwindling volumes leading to heightened volatility as we move closer to Christmas, as well as a recovery in US stocks towards the close last night. For the FTSE 100 the 5900 and more psychological 6000 level continues to hold up and whilst this December has not conformed to history these levels could remain intact into year end.

On the economic calendar today we see US GDP and existing home sales which may cause some movement in what is a slightly weaker US dollar so far this morning, but there aren’t expected to be any fireworks.


Source link  
Politics Influence Markets

With fears abating surrounding the threat of Catalan independence, the EUR moved higher overnight. Catalan President Puigdemont stated...

US Unemployment at Lowest Level

On Friday, the US Department of Labour released Nonfarm Payrolls for September. The meagre forecast of 88K was beaten with an even worse...

Further Strong Data From the US

On Wednesday, the US Institute for Supply Management (ISM) released Non-Manufacturing PMI for September that surprised the market...


Upbeat Data Boosts Dollar

On Monday, the US Institute for Supply Management (ISM) released data showing the index of national factory activity surged to a reading...

Harvey & Irma Effects Still Evident

The EUR suffered a second day of selling pressure, as the markets are growing concerned that the rise in right wing nationalism witnessed...

Risk-On or Risk-Off?

The rhetoric continues between North Korea and the United States with North Korea’s Foreign Minister, Ri Yong Ho, describing President Trump’s recent comments as “tantamount...


German & New Zealand Elections

The results of the German Election have re-elected Chancellor Angela Merkel for a fourth term. Her CDU party won fewer votes than was expected and Chancellor Merkel...

Fed Holds Rates for Now But...

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...

UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...

  


Share: