Investors seem to be embracing risk today even after newer variants of the looming coronavirus remained a threat last week around the world.
The Organisation of Petroleum Exporting Countries and their Allies (OPEC+) decides to stay put with the gradual output increase based on indications that the omicron variant would have a mere mild impact on demand.
European bourses enjoy a good day in the green while the US benchmarks Dow and S&P wound up at two different ends.
Asian markets look mostly dull and oil and gold seem lacklustre today. Bitcoin inches up along with Ethereum and Binance coin.
A brief on world drama – Politics and Trade
- A record of 4.5 trillion Americans quit their jobs in November
- Global banking giant Wells Fargo’s chief risk officer Mandy Norton stepped down
Top business and economic news today
- One of the world’s largest privately held buyout firms is reported to raise an initial public offering that would shoot the value of the company up to over $9.3bn
- British Airways owner IAG’s stocks gain as Omicron fears dissipate
Markets today
- Stocks: Asian markets open mixed, edging towards the negative while European bourses stay upbeat even as US key indices clash. Traders remain bright despite looming omicron case surge and fear.
- Oil: Oil down in the negative territory, down about 0.6% while natural gas loses over 0.8%.
- Gold: Gold and silver trade in the red today with the yellow metal trading flat and its silver counterpart losing a little over 0.3%.
- Forex: US dollar retreats along with yields, risk mood to drive markets as US Weekly Jobless Claims set to release today.
- Crypto: Volumes in the global crypto-verse jumped 17% today.
What to watch out for today
- Italy’s inflation rate is expected to be softer month-on-month and firmer on-year
- Japan consumer confidence data expected today
- Earnings: Specialty coatings maker RPM International and Simply Good Foods among the few US companies reporting results today
Read more: Tencent (0700) joins backers to invest in UK digital bank Monzo
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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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