- Inflation woes continues on Thursday as the British Chambers of Commerce (BCC) announced that recovery for UK business in the last quarter (Q4) will be slow. UK price pressures are now “unprecedented,” it said in its press release.
- Last year UK drivers dealt with a petrol crisis, which led to queues outside stations. This year, according to data from the RAC, it has been revealed that drivers in the UK have been overcharged for petrol by around £5m ($6.7m) a day in December as fuel retailers did not pass on price cuts.
- Banks react: As Covid cases rise, banks in Hong Kong, including HSBC (HSBA) and UBS Group, have decided to reduce the number of employees working in its offices after having operated at nearly full capacity.
If mere talk of raising interest rates in the future crashes the stock market and sends unemployment soaring, will the #Fed actually raise interest rates? If the Fed calls off the rate hikes even though the official #inflation rate is higher in 2022 than it was in 2021 then what?
— Peter Schiff (@PeterSchiff) January 5, 2022
Business and economic news
- Cruise cancelled: Omicron concerns have spread among cruise liners as Royal Caribbean and Norwegian Cruise Line announced yesterday it would cancel some of its cruises due to Covid. This is the latest move from the industry, which has been trying to recover from the virus since it hit the world in 2020.
- Analysts at Goldman Sachs announced today that the popular cryptocurrency Bitcoin will take market share away from gold in 2022. Analyst Zach Pandl said as people start to adopt the digital asset it will shift competition for gold.
- Stocks: UK stocks fell on Thursday, after the US Federal Reserve’s meeting notes showed that the central bank points to faster-than-expected rate hikes.
- Oil: Oil prices rose today, due to increasing unrest in the OPEC+ oil-producing nation Kazakhstan and supply outages in Libya.
- Gold: Gold prices fell today after the US Federal Reserve’s December meeting signalled interest rate hikes to reduce inflationary pressures.
- Forex: The US dollar started to climb back towards its recent 14-month high following the release of Federal Reserve policy meeting minutes, which fuelled speculation that a rate hike is on the way.
- Crypto: Bitcoin fell by 7.54% and Ethereum and dropped by 12.12% today due to signs that the Fed will raise interest rates.
in the end, it was the Fed that took out bitcoin support at 46k.. now testing trend channel support and VWAP anchored from ATH and from beginning of 2021.. look out below if they break$BTC pic.twitter.com/WjNZK7TGSG
— Jared Blikre (@SPYJared) January 5, 2022
What to watch today
- Snack and baked foods chain Greggs (GRG) now has a woman in charge. Roisin Currie will be the company’s new CEO. The announcement comes as Greggs confirms strong sales across its 2,181 stores in the Christmas run-up.
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.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.