The American holiday of Thanksgiving is often regarded as marking the beginning of the busy Christmas shopping period. The Friday after the event is traditionally recognised as being the busiest shopping day of the year in the US, and has gained the title of ‘Black Friday’. It is the day when customers flock to the shops to buy their Christmas gifts, and as a result of this many big retailers roll out a series of discounts and offers for maximum exposure. It is therefore also an important time for the stock market, as brokers keenly examine exactly how much money consumers are spending to get an indication of overall profits across the market.
Black Friday this year proved to be an enormous success, which was reflected on the stock market. Retailers reported increased footfall within stores, while sales made online via computers or mobile devices smashed all records from previous years. Many stores opened their door to customers early to maximise potential for profit.
Particular successes which were reflected in the stock market came from within the technology industry. The industry had experienced a few difficult weeks, during which investors seemingly lost confidence in technology companies. However, those who may have seen an opportunity for spread betting on the continued decrease of the industry during this time will have found themselves suffering losses. The success of technology companies over the Black Friday weekend meant that amongst Standard & Poor’s 500, it was the industry which increased the most. Dell, Hewlett-Packard and AMD were the three companies which saw the highest increase in share prices.
Overall, Standard & Poor’s 500 saw its largest weekly gain in a year. It added 1.3% and so finished the week on 1409.15. European indexes also experienced positive gains. The UK’s FTSE 100 rose 0.5% while both France’s CAC-40 and Germany’s DAX added 0.9%. While people may have assumed that this was an inevitable result of Black Friday, there were a number of other factors which contributed to the stock indexes’ rise. It is thought that overall improvements from Germany’s economy helped to encourage investors across the globe and encourage more spread betting. The same is also thought of China, which has seen growth in its manufacturing industry for the first time in over 12 months. Results such as these provide investors working within capital markets with an indication that the global economy could be gaining momentum after an undoubtedly difficult couple of years.
Author – Adam is a copywriter for Derwent Capital Markets who are leaders in the financial field of spread betting