The pound bounces back
The pound suffered yesterday immediately after Jeremy Hunt’s Autumn Statement, but has since recovered. The OBR said the UK economy would contract 1.4% while Hunt outlined tax hikes and freezes that meant all UK taxpayers would be paying more tax.
However, better than expected UK retail sales saw GBP/USD recover to trade 1.1892 at the time of writing.
European Gas prices rise
European gas prices were on the up on Friday as traders positioned for colder weather. Europe has been unseasonably warm as we entere winter, but the above average temperatures are set to give away to more seasonable weather. After falling through October and early November, European Gas and Electricity prices are beginning to tick higher.
Centrica shares cheer Autumn Statement
Despite being slapped with a 45% windfall tax by the UK government, Centrica shares continued their rally on Friday as investors cheered the amendment in the energy price cap to £3,000 from £2,500 in April. SSE shares have also gained since yesterday’s announcement.
Lithium miners fall
Lithium bulls are being presented with an opportunity to pick up lithium shares during a dip in many of the world’s largest producers. The sector was hit yesterday after reports downstream lithium processors and battery manufacturers in China were concerned about potential overcapacity next year, and at how quickly the metal had rallied.
Chinese H-shares stocks close week higher
Despite selling on Friday, Chinese stocks finished the week in the green as investors bet on an economic recovery. Stocks in Hong Kong have built a bottom and rallied sharply in recent weeks after rumours swirled on social media that authorities were considering the end of zero covid policy.