Holidays On Deck As We Watch The Beginning Of Quieting In Some Markets

Jockeying for next week’s Thanksgiving holiday in the U.S. has already begun. Come Wednesday, Thursday and Friday, Europe and Asia will be left fairly much to their own devices. (Of course only Thanksgiving Day itself is a full on market-closed holiday, but between the run up and the lethargy of the day after, don’t expect much from New York or Chicago.

European equities closed up, finding three-month highs, primarily on comments by European Central Bank president Mario Draghi and a general sense of economic improvement. (The latter feeling predominated in spite of the pall cast over the continent because of the terror attacks in Paris one week ago.)

The European Central Bank's chief economist, Peter Praet, today signaled that further stimulus measures are possible, while Draghi struck a decidedly dovish tone in a speech he delivered on this morning. 

In New York, stocks came off their high, paring very impressive morning gains to respectable gains as the week comes to the close. Renewed retail vitality prompted some claw back by stocks that should see a strong holiday season. Many retail issues fell back earlier this month on warm weather – which thwarts winter clothing purchases – and bad news from sector leaders Macy’s and Wal Mart.

The U.S. dollar headed up against the euro once more, drawing its sustenance from speculation about future ECB and Federal Reserve actions.

The powerful greenback helped drag down gold toward six-year lows. Silver tumbled a full 1.00% while platinum slipped. Palladium, though, got some wind in its sails and rose almost 2.5% despite the gravitational pull of the dollar.

Oil remains a continuing dominant story. In afternoon trading, West Texas Intermediate is floundering at $39.39 per barrel as not only the dollar weighs but as huge, seemingly infinite stockpiles loom large.

U.S. government reads on storage reflected an eighth straight week of builds in U.S. crude inventories. Short covering going into the weekend prevented WTI from sinking even more than it did.

Brent North Sea oil saw a rise in price, due to the volatile political situation that stretches from France and Belgium to the Middle East and now to Africa. Brent is the world benchmark, but is really the bellwether for what is happening to prices in Europe and a good part of Asia. So, the disorientation, anger and fear buzzing around because of terror strikes are pushing Brent higher.

Returning to our discussion of the upcoming American holidays, we think Thanksgiving is aptly positioned this year. It can serve as an extra time to ponder the violence that has beset us. It can also serve to make us take notice that prosperity for more people across the world is one of the few sure antidotes to mass violence.

Wishing you as always, good trading,