Yesterday saw a 5% plunge in oil prices. The rise in US inventories this week acted as a catalyst for the realization that global production seems excessive in relation to the economic context. Once they had brushed aside the common-sense red flag which suggests that if demand is weak, then the economy is doing badly, investors quickly concluded that this bout of weakness bodes well for prices and for the easing of monetary policy.

Logically enough, energy stocks took a beating yesterday. This contributed to most European markets closing lower.

This morning, the FTSE 100 bounced back and was up 0.7% at 9am, still boosted by hopes that interest rates have peaked as inflation cools down and after British retail sales volumes unexpectedly declined in October.

Among stocks, AstraZeneca gained 1.3% after U.S. health regulator approved a treatment for breast cancer.

Things to read today:

America should aim for competitive coexistence with China (Financial Times)

Traders Bet on ECB Rate Cuts Next Year (Bloomberg)