Fixed Odds Trading w/c 23 March
|
|
 |
The Weekly Financial Trading Review - supplied and sponsored by BetOnMarkets.
For this week's update >> Financial Fixed Odds Trading.
Financial Trading Week - 23 Mar 2009
After a volatile 5 days, world stock markets just managed to close last 5 days in the black. It was a week of two halves with the good work from the start of the week being undone in the second half as traders slipped into reverse gear on Thursday and Friday. At least markets managed to hold the gains from the previous week which in the context of the bear market is no mean feat.
The massive influx of money from the US Fed and UK Treasury led to a substantial increase in both crude oil and gold prices last week. Crude prices pushed through the $50 level for the first time since the start of 2009, while Gold endured a remarkable week, trading as low as $883 and finishing at $951. It is no coincidence that these two markets are trading higher in tandem as they are both linked with inflation expectations. Gold is traditionally seen as an inflation hedge, while oil is a barometer for global economic activity. With the Fed turning on the printing presses yesterday, inflation fears are once again creeping into investor’s consciences.
The Fed’s plans have been described as a ‘shock and awe’ tactic, a phrase first used to describe the initial stages of the conflict in Iraq. There was certainly a shock last week, with the dollar registering its 3rd biggest single day decline ever. However, after an initial rally, there was no awe from equity markets as investors fret that like the Iraq conflict, there are no plans in place to tidy up the inflation mess that could be round the corner. The Greenback’s weakness has dampened what would have been an excellent week for oil majors such as BP, which derive much of their income in the form of US dollars.
This took the shine off the solid performance from other sectors such as financials. Although AIG sparked Obama’s ire with its bonus payments, it was on the whole a good week for the banks. Citigroup performed a reverse stock split, finishing down, but Barclays, Lloyds, RBS and HSBC all performed well. News that Barclays is planning to sell its shares unit has added fuel to the fire, with HSBC also benefiting from the ‘independence’ premium. The success of HSBC’s rights issue may have also encouraged financials.
The dollar wasn’t just punished because of the Fed’s action, though this was certainly a significant catalyst. There were also rumours last week that the UN may push for countries to diversify their currency reserves across a basket of currencies, rather than being so heavily weighted in the US dollar. With China holding massive reserves of US dollars, diversification could lead to an oversupply on world markets, and a further depreciation in the value of the dollar. There were gains for the pound against the dollar, but sterling didn’t escape punishment against the euro. UK Plc was singled out for punishment on news that unemployment reached a 12 year high. There are concerns about the EU’s exposure to Eastern Europe, but this for the moment is being outweighed by the state of the UK and US economies.
This week’s economic highlights include US existing home sales on Monday and UK CPI on Tuesday. Wednesday is another busy day with German IFO, and UK CBI realised sales, US durable goods, and US new home sales to come in the afternoon. Thursday brings UK retail sales and US unemployment claims, and Friday sees the latest UK current account data released. Sometime in the week, Nationwide will release their latest UK house price index, and the MPC inflation report hearing is tentative for Friday.
With the economic crisis being a truly global phenomenon, no country is immune from the gloom. This makes picking a strong currency a tricky task which some analysts have termed ‘ugly contest’. Gavekal wrote last week that “away from the spotlight, some currencies either offer tremendous value because they have been oversold concerns about debt exposure or because they have sound-enough fundamentals which, in these panicked times, the markets are ignoring.” Last week the commodity currencies such as the Norweigen Krona and Canadian dollar were highlighted as being overlooked and likely to benefit the most from any return to stability in the global economy.
The above comments do not constitute investment advice.
The author(s), Clean Financial and any company mentioned do not accept any responsibility for any use that may be made of them.
BetOnMarkets »
Live Prices & Charts, No Commissions, No Fees.
Financial Fixed Odds on Shares, Indices, Forex,
Commodities and more »
BetOnMarkets review.
|
Please Note: Financial fixed-odds can become addictive. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
'Fixed Odds Trading w/c 23 March' by David Evans, updated 23-Mar-09
For related pages also see:
Financial Fixed Odds, updated 15-May-13
Financial Fixed Odds guide: live fixed odds chart, a video on the main financial fixed odds markets, where to trade financial fixed odds, how to trade and...read article: Financial Fixed Odds.
Financial Fixed Odds News, updated 22-Jun-09
Financial Odds News: It seems like the stock markets have lost their magic, as the FTSE 100 has dipped back into the red for the year. Concern over...read article: Financial Fixed Odds News.
Fixed Odds Trading w/c 29 June, updated 29-Jun-09
It was certainly a mixed week for world stock markets last week with Monday's opening slump almost being cancelled out by Thursday's strong rally. The S&P 500 just managed to nudge into...read article: Fixed Odds Trading w/c 29 June.
Fixed Odds Trading w/c 15 June, updated 15-Jun-09
Last week, equities were dead in the water, with no meaningful moves in either direction on all the world's major stock markets. The FTSE's weekly trading range was just 135, its lowest level since May 2008...read article: Fixed Odds Trading w/c 15 June.
Fixed Odds Trading w/c 8 June, updated 08-Jun-09
There was a mixed reaction to Friday's Non Farm Payroll numbers. Job losses came in at much less than anticipated causing short term volatility on equity futures and forex markets. Treasuries plunged and stocks surged at the open, but...read article: Fixed Odds Trading w/c 8 June.
Fixed Odds Trading w/c 1 June, updated 01-Jun-09
Funds are flowing out of 'safe' assets into riskier, more inflation resistant assets, such as equities, gold and crude oil. Oil and Gold in particular are in demand with...read article: Fixed Odds Trading w/c 1 June.
Fixed Odds Trading w/c 25 May, updated 25-May-09
Gold appears to be taking up the slack, as investors hunt for the combination of safety and inflation hedging that gold...read article: Fixed Odds Trading w/c 25 May.
Fixed Odds Trading w/c 18 May, updated 18-May-09
Markets were placed firmly on the back foot last week as the previous week's rally was strongly reversed. Dark clouds are gathering over the green shoots. A slew of poor economic data has...read article: Fixed Odds Trading w/c 18 May.
Fixed Odds Trading w/c 11 May, updated 11-May-09
Equity markets extended their winning run with the FTSE, CAC, DAX and S+P 500 all now up for 2009. The Nasdaq was the notable laggard last week. High tech share such as Apple, Google and Intel have been hit hard after...read article: Fixed Odds Trading w/c 11 May.
Fixed Odds Trading w/c 4 May, updated 04-May-09
US markets were also strong with Nasdaq 100 making it eight winning weeks on the trot. The rally came despite record continuing jobless claims in the US. However, it is thought that the...read article: Fixed Odds Trading w/c 4 May.
Fixed Odds Trading w/c 27 April, updated 27-Apr-09
The strongest performance came from the Nasdaq 100 which rose 3.24%, its 7th winning week on the trot. The Nasdaq was buoyed by...read article: Fixed Odds Trading w/c 27 April.
Fixed Odds Trading w/c 20 April, updated 20-Apr-09
Despite all this, it has been a relatively good week for the US Dollar, clawing back losses made in the early part of the week against...read article: Fixed Odds Trading w/c 20 April.
Fixed Odds Trading w/c 13 April, updated 13-Apr-09
One way to play this is through a No Touch bet with BetOnMarkets. A No Touch trade predicting that the Dow Jones (Wall Street) will not touch 10,000 at any time during...read article: Fixed Odds Trading w/c 13 April.
Fixed Odds Trading w/c 6 April, updated 06-Apr-09
Gold has remained in a relatively tight trading range over the last month or so a break out could be overdue. A One Touch trade predicting...read article: Fixed Odds Trading w/c 6 April.
Fixed Odds Trading w/c 30 March, updated 30-Mar-09
Markets shot out of the gates last Monday, and more importantly, managed to hold those gains for most of the week. The news flow continued to be mixed, but investors chose to take a 'glass half full' rather than a 'glass half empty' philosophy. For example on Wednesday, markets were buoyed by...read article: Fixed Odds Trading w/c 30 March.
Fixed Odds Trading w/c 23 March, updated 23-Mar-09
The massive influx of money from the US Fed and UK Treasury led to a substantial increase in both crude oil and gold prices last week. Crude prices pushed through the...read article: Fixed Odds Trading w/c 23 March.
Fixed Odds Trading w/c 16 March, updated 16-Mar-09
The euro enjoyed a strong week against the dollar and pound, pushing sterling to its lowest levels since...read article: Fixed Odds Trading w/c 16 March.
Fixed Odds Trading w/c 9 March, updated 09-Mar-09
Last week, major stock markets marked their fourth losing week in a row. The Dow fell 6.2% on the week while the S+P 500 fell 7%. S+P 500 hitting its lowest level since...read article: Fixed Odds Trading w/c 9 March.
Fixed Odds Trading w/c 2 March, updated 02-Mar-09
Gold is normally seen as a safe haven in troubled times, but last week the precious metal retreated further from the $1,000 level to close...read article: Fixed Odds Trading w/c 2 March.
|
|
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more!
|
|
