2021-11-22 18:12:08

Dow soars after Biden picks Powell for Fed chair

US shares are mixed in early trading on Monday as the Blue-chip Dow surged more than 200 points and President Joe Biden selected Jerome Powell for another term as chair of the Federal Reserve.

By mid-day, the Dow Jones Industrial Average was up 252 points, or 0.7%, the S&P 500 was up 0.3% to a new intraday record, while the Nasdaq Composite was 0.6% lower, despite a higher start to the session.

On Friday, the Dow dipped 268 points to close at 35,601.

Biden picks Powell for another term 

In a statement issued by the White House today, President Biden nominated Jerome Powell for a second term as chair of the Board of Governors of the Federal Reserve System and nominated Dr. Lael Brainard to serve as vice chair.

According to the White House, Powell has provided steady leadership during an unprecedently challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve.

Winners and losers: Rivian and Ford back out of deal

Shares for Adobe jumped 1.2% after being upgraded to Overweight from Neutral by Atlantic Equities.

Shares for Tesla are up 5% following an Elon Musk tweet stating the Model S Plaid might come to China ‘around March.’

Shares for Astra Space took off 32% after the space transportation company successfully completed its first commercial orbital launch for the US Space Force.

Shares for Rivian Automotive are 14% lower after the firm and Ford Motor pulled away from an electric vehicle deal last week.

Shares for Ericsson sank 6.1% after the Finnish telecom group announced it had agreed to buy Vonage, a US provider of cloud-based communications for $6.2bn. Shares for Vonage are up 25%.

Oil: Crude rebounds after early slump

After beginning the session in decline, oil prices are rebounding halfway through the session.

West Texas Intermediate crude for January delivery is up 0.91% on the New York Mercantile Exchange, while January Brent crude, the global benchmark, is 0.85% higher.

Both benchmarks fell sharply last week, logging a fourth straight week of declines to end at a low of seven weeks.

Gold: Losing skid extended

On Monday, gold futures dropped lower for a third straight session.

December gold was trading down $9.10, or 0.5%, pushing the precious metal near the lowest level since 10 November.

Crypto: Digital assets fall again

Following a series of losing sessions last week, crypto rebounded across the board late last week.

On Monday, the digital assets are lower again with Bitcoin 3.55% lower, Ethereum 4.01% lower, while Litcoin is 6.04% in the red and Monero is 6.30% down.

Forex: US dollar outpaces Canadian

The yield on the 10-year Treasury note is up six basis points to 1.594%, while the ICE US Dollar Index, a measure of the currency against a basket of six major rivals, was up 0.3%.

On Monday, one US dollar equals 0.89 of the euro, 0.75 to pound sterling, and 1.27 of the Canadian dollar.

Read More: Jerome Powell to Lead US Fed for second term

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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.

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