CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
Open an account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
Open an account
✖

European Open: ‘Jack in the box’ trading continues

Article By: ,  Market Analyst
December 8, 2021 6:53 AM

Asian Indices:

  • Australia's ASX 200 index rose by 112.3 points (1.54%) and currently trades at 7,426.20
  • Japan's Nikkei 225 index has risen by 424.11 points (1.49%) and currently trades at 28,880.66
  • Hong Kong's Hang Seng index has fallen by -28.75 points (-0.12%) and currently trades at 23,954.91
  • China's A50 Index has risen by 182.67 points (1.16%) and currently trades at 15,969.88

UK and Europe:

  • UK's FTSE 100 futures are currently up 3 points (0.04%), the cash market is currently estimated to open at 7,342.90
  • Euro STOXX 50 futures are currently up 8 points (0.19%), the cash market is currently estimated to open at 4,284.20
  • Germany's DAX futures are currently up 18 points (0.11%), the cash market is currently estimated to open at 15,831.94

US Futures:

  • DJI futures are currently up 492.4 points (1.4%)
  • S&P 500 futures are currently up 86.25 points (0.53%)
  • Nasdaq 100 futures are currently up 18.25 points (0.39%)

Asian equities jump higher in line with sentiment

Of course, the force which suppressed prices was the Omicron variant and there now seems to be no shortage of headlines suggesting all is well. And that lift in sentiment saw Asian equities race out of the gates as they tracked Wall Street higher in a similar fashion.

The ASX 200 did its best impression of a telegraph pole by opening at the low and now on track to close at the high of the day, and currently up around 1.6%. Japan’s markets were the leaders with the Nikkei 25 rising over 1.9% and China’s A50 up around 1.1%. The Hang Seng was underwater slightly, weighed down by Kaisa which missed a debt payment and Evergrande hit a new low.

GBP feels the weight of commodity FX

The US dollar index saw a false break above 96.43 resistance yesterday and closed with an indecision candle. Traders appear hesitant to front-run Friday’s CPI data, and perhaps there are downside risks given the consensus is for already hot-inflation to heat up further. If so, perhaps euro saw the low for the week yesterday above the 1.1 handle.

The British pound felt the might of commodity FX yesterday, with GBP/AUD hitting a 1-week low yesterday and sliding a little further today. GBP/NZD printed a bearish outside day at its 2-month high, whilst GBP/CAD fell to our initial 1.6730 target near the November low. We favour GBP/CAD for further shorts.

GBP/CAD teases November low

The daily chart remains in a strong downtrend, and momentum realigned with that trend yesterday after repeatedly failing to break above 1.7100. Yesterday’s bearish candle broke trend support with ease and prices are now hugging the lows. We suspect any upside bounce from here could be limited and a break back to the March 2020 low (1.6551) to be the path of least resistance.

BOC rate decision is the main event today

It’s their final show of the year and the central bank is expected to hold rates at 0.25%. Yet with economists expecting four hikes in 2022 they’ll be looking for some form of assurance current expectations are correct. Therefore, the contrarian approach is to short CAD should the central bank not be as hawkish as hoped today, whilst the biggest bullish surprise (although not likely) would be for a hike at this meeting. And with GBP/CAD at a key support level heading into the meeting it provides a clear pivotal level for markets to trade around.

FTSE 350: Market Internals

FTSE 350: 4199.99 (1.49%) 07 December 2021

  • 293 (83.48%) stocks advanced and 53 (15.10%) declined
  • 18 stocks rose to a new 52-week high, 1 fell to new lows
  • 55.84% of stocks closed above their 200-day average
  • 76.35% of stocks closed above their 50-day average
  • 17.66% of stocks closed above their 20-day average

Outperformers:

  • + 9.26% - Moonpig Group PLC (MOONM.L)
  • + 9.10% - Trustpilot Group PLC (TRST.L)
  • + 8.10% - Network International Holdings PLC (NETW.L)

Underperformers:

  • -2.67% - Baltic Classifieds Group PLC (BCG.L)
  • -1.94% - B&M European Value Retail SA (BMEB.L)
  • -1.90% - Domino's Pizza Group PLC (DOM.L)

 

Up Next (Times in GMT)

 

 

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

  1. Open a Forex.com account, or log in if you’re already a customer.
  2. Search for the pair you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2025