Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Europe Confidence Slips, Bitcoin Corrects, Slack Talk - What's up in Markets

EconomyNov 26, 2020 19:51
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Geoffrey Smith -- Germany extends its lockdown restrictions through December 20th – but doesn’t tighten them much despite failing to bring down its infection curve. Consumer confidence in Europe’s two biggest economies falls. Bitcoin corrects sharply downward, and Ripple corrects even more sharply. Salesforce is reported to be close to buying Slack and Exxon Mobil is gloomy on oil. Here’s what you need to know in financial markets on Thursday, November 26th.

1. Germany extends restrictions - but doesn't tighten them much

Germany’s federal and regional governments extended current restrictions on business and social gatherings until December 20 and expanded restrictions on mask-wearing, but otherwise shied away from tightening restrictions as it tries to bring its second wave of the coronavirus under control.

Europe’s largest economy reported a record-high 32,000 new cases of Covid-19 on Wednesday, as well as over 300 deaths for the third straight day. Having implemented a less strict lockdown to deal with the second wave of the pandemic, it has so far failed to bring the virus under control. By contrast, France and the U.K. have started to relax their restrictions ahead, hoping to guarantee something closer to normal life by Christmas.

Consumer sentiment surveys in both France and Germany both fell by more than expected in November, data released on Thursday showed.

2. AstraZeneca (NASDAQ:AZN) drug doubts

Doubts are growing about the reliability of the data provided by AstraZeneca (LON:AZN) and the University of Oxford over the effectiveness of their experimental drug to fight the coronavirus.

Moncef Slaoui, the head of the U.S. Operation Warp Speed team tasked with funding vaccine development, said on Wednesday that the subgroup which reported the highest degree of efficacy in the stage 2 trial data released last week had been restricted to people under 55, an age bracket that appears in any case to be more resistant to the disease, or at least its more severe manifestations.

The test data had shown that the drug had prevented the disease in 62% of people who received two full doses of the vaccine, but 90% in those who received only a half dose to start with. The half-dose experiment started as a mistake but was extended for the sake of consistency.

3. Stocks drift, Bitcoin slumps after rally

Global stocks stayed in mostly positive territory before drifting into range trading as the U.S. Thanksgiving Holiday loomed large over the day’s proceedings.

Weak consumer confidence data in France and Germany were marginally offset by stronger-than-expected credit growth figures from the European Central Bank, which is also due to release the accounts of its last policy meeting later.

By 6:30 AM, the STOXX 600 benchmark index was down less than 0.1%, while the Shanghai Shenzhen CSI 300 index closed up 0.2%.

There was a more violent correction in other markets, where Bitcoin gave up over 10% after an equally violent rally, while Ripple, another popular cryptocurrency, fell 22%.

4. Salesforce talks to Slack

Slack (NYSE:WORK) stock rose 36% on Wednesday to close near an all-time high on reports that it is in talks to be acquired by software giant Salesforce (NYSE:CRM).

Marc Benioff’s company could reach a deal for the office messaging software app within days, according to The Wall Street Journal, but it’s unclear how any deal would be structured. Like many software companies, its valuation is far in excess of what its current financials would usually justify.

For all its popularity, Slack’s shares have failed to capitalize on the trend away from email in offices, and now faces an increasingly acute strategic challenge from Microsoft’s Teams application.

5 Oil steadies after rally; Exxon's gloomy forecasts

Crude oil prices also retraced slightly but stayed close to their post-pandemic highs after some judicious profit-taking

By 6:30 AM ET (1130 GMT), U.S. crude futures were down 1.0% at $45.22 a barrel, while Brent crude futures were down 0.9% at $48.09.

The Wall Street Journal reported on Wednesday that Exxon Mobil (NYSE:XOM) had revised down its estimate of oil prices over the next six years by between 11% and 17%, indicating expectations of a prolonged impact on prices from the pandemic.

Short-term pressures may also be building up, given a surprisingly strong build in U.S. inventories last week, according to U.S. government data released on Wednesday.

Europe Confidence Slips, Bitcoin Corrects, Slack Talk - What's up in Markets

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email