China dominates sentiment in listless market – eToro Tips & Picks

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If there are no unexpected developments in the Middle East or any other major news events, the next few days are likely to be reasonably quiet for the US and European markets. Investors seem to be watching and waiting ahead of Friday’s US non-farm payrolls report and Janet Yellen’s speech.
 
Even if the markets aren’t moving much in the US and Europe, investors will be watching China and the Asian markets. Chinese stocks had a volatile day yesterday, with markets in Shenzhen and Shanghai swinging wildly between negative and positive territory. This followed Friday’s 5+ per cent fall, after news emerged of investigations into financial irregularities by some brokerages. 
 
Volatility is likely to persist, leading to some interesting trading opportunities. Indeed, as the week moves on, China will become more and more important, as news of its struggling economy seems to be coming around just as we approach the key decision from the Fed regarding interest rates.
 
Amazon and other online retailers reported major sales over the weekend as shoppers took advantage of Black Friday deals. Cyber Monday is expected to see a similar surge in spending, with purchases running into billions of dollars worldwide. Some of the big retailers may well be showing improved fourth quarter earnings, so we must yet again focus on the retailers as we approach the festive period.
 

ETORO ANALYST: STEFAN MILES

Overall it’s been a busy few days for the retailers and, after posting some pretty impressive numbers over the weekend, some of the big US retailers are already showing gains from Black Friday and yesterday’s Cyber Monday trading. 
 
UK firms struggled with footfall on Friday, however, and after pushing for such a long time on stock for the pivotal trading days, we will have to wait for fourth quarter numbers before we see whether the issue will have had a negative effect.
 
Nevertheless, eToro clients have continued to buy into the larger firms, with over 80 per cent of clients long all of the major online and high street retailers on our platform.