Noor Trends News, Technical Analysis, Educational Tools and Recommendations
European markets opened the week in the red, reflecting a subdued trading environment as the Christmas holiday approaches. At 03:13 ET (08:13 GMT), major indices showed minor declines:
- Germany’s DAX: -0.4%
- France’s CAC 40: -0.1%
- UK’s FTSE 100: -0.1%
With many markets preparing to close early or remain shut on Christmas Eve and Christmas Day, trading volumes are expected to be light.
UK Q3 GDP Revised to Stagnation
The UK’s GDP growth for Q3 2024 has been revised downward to reflect 0.0% growth, compared to an earlier estimate of 0.1% expansion.
Key figures include:
- Construction sector: +0.7% growth
- Production sector: -0.4% contraction
- Services sector: No growth
Other economic indicators:
- GDP per head: Declined by 0.2% quarter-on-quarter and year-on-year.
- Household real disposable income per head: Stagnant in Q3, following a 1.4% increase in Q2.
- Household savings ratio: Eased to 10.1% from 10.3% in Q2.
These figures underscore the economic challenges facing the government of Prime Minister Keir Starmer and Finance Minister Rachel Reeves, who have pledged long-term growth through policy reforms.
Aviva Acquires Direct Line in £3.7 Billion Deal
Aviva has finalized its £3.7 billion acquisition of Direct Line, creating the UK’s largest home and motor insurance provider.
Under the deal:
- Direct Line shareholders will receive 0.2867 new Aviva shares, 129.7 pence in cash, and an additional up to 5 pence as a dividend.
This strategic move strengthens Aviva’s market position ahead of what is expected to be a competitive insurance landscape in 2025.
Oil Prices Edge Higher Amid Positive U.S. Developments
Crude oil prices recorded modest gains early Monday, supported by favorable developments in the U.S., including the resolution of a potential government shutdown and signs of cooling inflation:
- Brent crude futures: +0.3%, at $72.81 per barrel.
- WTI crude futures: +0.4%, at $69.75 per barrel.
Additional factors supporting the market:
- Optimism surrounding China’s economic stimulus plans, which could boost demand.
- The potential for stricter sanctions on Iran and Russia, hinting at a tighter supply outlook for 2025.
Despite last week’s losses, these developments have helped oil markets regain a more optimistic footing heading into the holidays.
