A brief look at the markets over the course of the last week, supplied and sponsored by paddypowertrader.
For the latest weekly round-up see: Online Trading News.
Weekly Market Review: 21 Apr 08
A great week for equities as bad US economic numbers were hidden by Harry Potter's invisibility cloak and banks lost their shock appeal. No matter how hard the banks tried (Citi's further $5 billion losses for the quarter and talk of a £10 billion RBS rights issue) investors were only interested in the offer price. There was a feeling that the worst was over for the banks…again. With the US earnings season in full swing the glass appeared to be half full with a host of the American heavyweights reporting figures above expectations.
The gap between US and Eurozone inflation narrowed as the US rate remained at 4% but European inflation climbed to 3.6%. That gave added credibility to the tough anti-inflation stance taken by the European Central Bank. Reaction in the currency markets was to send the EUR / USD FX rate to a new record high. There were further allegations of monkey business in the money markets with it being suggested that some banks weren't declaring the higher rates that they were lending money at, sparking talk of an official investigation.
Equity markets had their best collective week for some time. The FTSE was the lazy laggard, rising 'only' 2.7%; the DAX fared better with a 3.6% rise. The S&P and Dow saw gains of 4.3% and the Nikkei rose by around 5.5%.
Equities
Royal Bank of Scotland stole the show with rumours of a £10-12 billion rights issue, though they're expected to be the first of several UK banks to raise funds. JC Flowers announced it didn't want to be Friends after the UK insurer spurned the opportunity of talks. The Tech Sector received a boost with good earnings from IBM, Intel, Google and eBay.
In the Pharmaceuticals Sector, Shire decided to emigrate, transferring its tax domicile to Ireland, and AstraZeneca shares rose 8% after a move to settle a long-running legal dispute.
Corporate America was boosted by good releases from Coca Cola, Caterpillar and Honeywell, but in Europe Phillips disappointed with a 28% drop in profits.
FX
The Euro rose to within spitting distance of the $1.60 level, hitting a new high of $1.5983 against the Dollar. Although a big sell-off on Friday saw it close the week at $1.5810. The EUR GBP cross followed a similar pattern; the Euro had a sniff at £0.81, but ended the week lower at £0.7880. The Yen lost 3% against the Dollar as rising equity markets fired investors' appetite for risk.
Commodities - Gold and Crude Oil
Crude Oil hit new record highs on a daily basis, touching $117 on Friday. At first prices rose in reaction to the falling Dollar. But although the Dollar recovered towards the end of the week Crude Oil continued to rise on supply worries. US refineries are operating at their lowest levels since 2005, creating a shortage of petrol ahead of the US driving season. And a jump in demand from China is causing a shortage in Diesel. Brent Crude ended the week up $6 at $113.92.
Gold rallied to $952, but failed to hold the $950 level and dropped to end the week $6 lower at $914.40.
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'Spread Betting Markets w/c 21 Apr' by paddy power trader, updated 21-Apr-08
For related pages also see:
Online Trading News, updated 01-Sep-08
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Spread Betting Markets: After producing better than expected earnings Goldman Sachs turned on the market with a forecast that US banks may need to raise a further $65 billion of...read article. Spread Betting Markets w/c 16 Jun, updated 16-Jun-08
Spread Betting Markets: Barratt Development plunged 38% over the week on fears that failure to renegotiate bank financing would lead to a debt for equity swap. There was no pleasing shareholders in Carphone Warehouse; investors ignored the rise in profits and 31% dividend increase and sold the shares down 12% on the companys cautious outlook. British Energy rebuffed an...read article. Spread Betting Markets w/c 9 Jun, updated 09-Jun-08
Spread Betting Markets: In the UK, the retail picture was also mixed. Supermarket WM Morrison reported food sales up 7% in the first quarter. However Kingfisher, operator of DIY chain B&Q, painted a gloomier picture. Their Q1 like-for-like results were...read article. Spread Betting Markets w/c 2 Jun, updated 02-Jun-08
Spread Betting Markets: Crude oil fell $7 in two days at the start of the week. An attempted rally on Wednesday petered out at $131 and the price dropped to $125. The fall was blamed on...read article. Spread Betting Markets w/c 26 May, updated 26-May-08
Spread Betting Markets: On Monday the Aussie Dollar rose to a 24-year high against the US Dollar; the Aussie was boosted by strong commodity prices and news that the central bank had discussed...read article. Spread Betting Markets w/c 19 May, updated 19-May-08
Spread Betting Markets: Oil pushed ahead to another new high of $127.82. This was mainly on fears that China would step up demand for fuel after the earthquake damaged several hydro-electric power plants. Late on Friday the price fell back on news that the Saudis would...read article. Spread Betting Markets w/c 12 May, updated 12-May-08
Spread Betting Markets: Oil set new record highs each day last week. A warning from Goldman Sachs that oil could hit $200 resulted in heavy buying of options to purchase oil at that level in December 2008. OPEC did not help matters, blaming speculators, rather than a lack of supply, for...read article. Spread Betting Markets w/c 5 May, updated 05-May-08
Spread Betting Markets: The slide in the Euro gathered momentum, partly due to demand for the Dollar. The Euro ended the week at EUR USD $1.5410 and EUR GBP £0.7800. Sterling weakened marginally against the Dollar to...read article. Spread Betting Markets w/c 28 Apr, updated 28-Apr-08
Spread Betting Markets: RBS announced its well-leaked £12 billion rights issue and in response Barclays stated that it had other options available and Bradford and Bingley said that their funding would last into...read article. Spread Betting Markets w/c 21 Apr, updated 21-Apr-08
Spread Betting Markets: Crude Oil hit new record highs on a daily basis, touching $117 on Friday. At first prices rose in reaction to the falling Dollar. But although the Dollar recovered towards the end of the week Crude Oil continued to rise on supply worries. US refineries are operating at their lowest levels since...read article. Spread Betting Markets w/c 14 Apr, updated 14-Apr-08
Spread Betting Markets: The Euro rose to record highs against Sterling and the Dollar. Although interest rate moves were as expected, the economic slowdown in the US and UK continued to worsen more than in Germany and France. Comments from the European Central Bank prompted speculation of future central bank intervention in the forex markets. The Euro ended the week at...read article. Spread Betting Markets w/c 7 Apr, updated 07-Apr-08
Spread Betting Markets: Oil prices continued higher after an Exxon Mobil refinery caught fire. There were also worries about petrol supplies ahead of the summer months when most Americans jump in their hummers to drive to another part of America. The Driving Season as it is known, is an annual concern to...read article. Spread Betting Markets w/c 31 Mar, updated 31-Mar-08
Spread Betting Markets: Economic data helped to drag US and UK indices lower. The Dow ended the week 1.2% down, the S&P ended 1.1% down and even Techs lost their gloss with the Nasdaq gaining just 0.1%. The FTSE 100 closed 3.6% up and while the Nikkei 2.7% gain was made to look paltry next to Hong Kongs Hang Seng which closed 10.3% up...read article. Spread Betting Markets w/c 24 Mar, updated 24-Mar-08
Spread Betting Markets: The Dollar fell to new lows at the start of the week, but rallied on Thursday. This was largely due to a sell-off in commodities, which have an inverse relationship to the Dollar. The Dollar ended the week at $1.542 to the Euro and $1.9820 against Sterling. Against the Yen the Dollar recovered from Mondays 12-year low of...read article. Spread Betting Markets w/c 17 Mar, updated 17-Mar-08
Spread Betting Markets: The week that Gold smashed through the $1,000 barrier. The continuing collapse of the Dollar, together with contrasting fears of both higher inflation and collapsing asset prices, saw investors scrambling for safety. Both oil and gold benefited from their 'safe haven status'. Gold ended up $24 on the week at $999.75, having previously hit $1007; Brent Crude climbed...read article. Spread Betting Markets w/c 10 Mar, updated 17-Mar-08
Spread Betting Markets: Following predictions that US rates could fall below 2% this year the Dollar fell to $1.5340 and $2.0140 against the Euro and Sterling respectively. The Euro also reached a new high against Sterling, though profit taking saw it end the week at £0.7620. Risk aversion trades helped the Yen to an 8-year high of ¥101.44 against...read article. Spread Betting Markets w/c 3 Mar, updated 03-Mar-08
Spread Betting Markets: The growing conviction that European interest rates would, at best, remain unchanged whilst US rates would continue to fall boosted the Euro. Traders piled in, pushing the Euro to record highs of $1.5238 and £0.7678 against the Dollar and Sterling respectively. Sterling also gained ground against the Dollar, rising to...read article. Spread Betting Markets w/c 25 Feb, updated 25-Feb-08
Spread Betting Markets: Commodities fired back into life with Crude oil repeatedly breaching the $100 mark and gold hitting a new high of $953.60. Brent Crude finished the week up $2.5 at $97 and gold rose $35 to end at $943.65. These moves were partly a reaction to higher US inflation, but also due to an increased flow of...read article. Spread Betting Markets w/c 18 Feb, updated 18-Feb-08
Spread Betting Markets: The week ended with the FTSE 100, Dow and S&P 500 all falling by over 4%, but the Dax and Nikkei faring slightly better at -2.9% and -3.6%....read article. Spread Betting Markets w/c 11 Feb, updated 11-Feb-08
Spread Betting Markets: The Dollar fell against most currencies on strong hints of further rate cuts next month. The EUR - USD rate rose to $1.4670 and GBP - USD rose but then fell to $1.9580. Sterling was boosted by suggestions that interest rates would not fall as...read article. Spread Betting Markets w/c 4 Feb, updated 04-Feb-08
Spread Betting Markets: Microsoft stole the headlines with its $45 billion bid for Yahoo. Further sub-prime write-downs saw a record loss for UBS and a $2.3 billion loss for bond insurer MBIA. Friends Providents strategic review produced writedowns, a cut in dividend and the proposed sale of the holding in...read article. Spread Betting Markets w/c 28 Jan, updated 28-Jan-08
Spread Betting Markets: After falling, somewhat surprisingly, at the start of the week Gold prices rose to a new record high of $923.4. Small profit taking left it $30 up on the week at $912.5. Brent Crude Oil improved $1...read article. Spread Betting Markets w/c 21 Jan, updated 21-Jan-08
Spread Betting Markets: US banks took the headlines again with Citigroup, Merrill Lynch and Wells Fargo recording losses of mind boggling size, accompanied by a mixture of dividend cuts and announcements of overseas funding. The gloom was widespread with investors ignoring IBM...read article. Spread Betting Markets w/c 14 Jan, updated 14-Jan-08
Spread Betting Markets: Despite no change in UK rates, Sterling fell to a record low against the Euro, finishing at £0.7550, and hit $1.958. The Euro was little changed against the Dollar, ending the week at $1.4790. Gold was the major beneficiary of the weeks moves as risk averse investors switched...read article. Spread Betting Markets w/c 7 Jan, updated 07-Jan-08
Spread Betting Markets: Inspired by plenty of M and A talk, equities started the week in good form with FTSE trading breaking above 6500. However, the US in particular was unsettled by talk of further sub-prime write-downs as the week progressed. Confidence in shares suffered another blow when US data suggested that the manufacturing sector was no longer growing, and the weak payrolls figures on Friday proved...read article. Spread Betting Markets w/c 31 Dec, updated 31-Dec-07
Spread Betting Markets: The Euro was the main beneficiary of weak economic numbers from both the US and UK. It finished at a record close against Sterling of £0.7380 and the EUR USD trading returned to above $1.47. Sterling hit a one and a half year low against...read article. Spread Betting Markets w/c 17 Dec, updated 17-Dec-07
Spread Betting Markets: Oil rose by 3.5% as inventory levels fell, with Brent Crude finishing at $92.67 and by contrast, and despite repeated attempts, gold failed to hold above $800 and ended the week down $7 at $790 but unexpectedly high inflation numbers and unwinding of short...read article. Spread Betting Markets w/c 10 Dec, updated 10-Dec-07
Spread Betting Markets: Last week, investors shook off worries over falling house prices, weaker economic growth and rising money market rates to pile into equities in anticipation of lower official interest rates.The Bank of England duly...read article. Spread Betting Markets w/c 3 Dec, updated 04-Dec-07
Spread Betting Markets: Despite increasing hopes of a rate cut the Dollar rose in value against both the Euro and Sterling, ending the week at $1.4630 and $2.0580 respectively. A greater appetite for risk saw the Yen weaken on switching into higher-yielding currencies, falling to Y111.18 against the Dollar...read article. Spread Betting Markets w/c 26 Nov, updated 26-Nov-07
Spread Betting Markets: The small change on the week gave a false impression of the stomach churning 300-point move in FTSE and nearly 500-point move in the Dow. Low volumes allowed traders to push markets down ahead of Thanksgiving, before a move back up towards the end...read article. Spread Betting Markets w/c 19 Nov, updated 19-Nov-07
Spread Betting Markets: In what appeared to be a tough week for equities, the FTSE was barely changed and US markets were marginally higher. Asia fared worse with Japan down nearly 3% and Hong Kong losing 4%. Despite UK inflation moving back above its target rate, the Bank of England, in its Quarterly Inflation Report, signaled the probability of two 0.25% rate cuts next year. Mervyn King, with eye...read article. Spread Betting Markets w/c 12 Nov, updated 12-Nov-07
Spread Betting Markets: Across markets the falls ranged from a barely changed Dax -0.5% to the harder hit Asian markets with the Nikkei and Hang Seng falling by 5.5%. The FTSE and S and P 500 fell by around 3.5% with the Dow faring worse at -4.1%...read article. Spread Betting Markets w/c 5 Nov, updated 05-Nov-07
Spread Betting Markets: Once again the week ended with record highs in oil, gold and EUR/USD as sub-prime jitters returned to take the gloss off the equity markets. The US Federal Reserve delivered the expected 0.25% cut in interest rates to 4.5%, but ruined the party by saying they attached equal weight to...read article. Spread Betting Markets w/c 29 Oct, updated 29-Oct-07
Spread Betting Markets: In Europe, France Telecom, Pearson, Home Retail, BP and Shell all beat estimates. In the US, American Express, Apple, Dupont, Microsoft, Motorola and UPS all gave favourable reports. Figures from Amazon, Electrolux, Glaxo and...read article. Spread Betting Markets w/c 22 Oct, updated 22-Oct-07
Spread Betting Markets: America was worst hit, with the Dow ?4.1%, S and P ?3.9%, but other markets fared little better with FTSE and Nikkei ?3.0% and the Dax...read article. Spread Betting Markets w/c 15 Oct, updated 15-Oct-07
Spread Betting Markets: Risk appetite returned to the markets with equities reaching new highs and higher yielding currencies benefiting from a return to the carry trade. Minutes from the last US Federal Reserve meeting showed that...read article.
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