A brief look at last week and the week ahead, the Weekly Review from IG Index.
Weekly Trading Report 1 February 2010 - Last Week's Trading Highlights
Leading financial markets continued the slump which began in the previous week, even after the UK economy crawled clear of recession.
Tuesday's fourth-quarter GDP report showed a less-than-expected 0.1% growth and this lacklustre performance further depressed the value of the Pound.
However, the sight of the last major economy leaving the red seems to have provoked optimism not just from the World Economic Forum but also from the IMF. It upped its predicted 2010 world growth rate to 3.9%.
Apple showed itself an early forerunner of that optimism, announcing a 50% year-on-year profit increase on Monday and seeing a further boost after Wednesday's much-hyped iPad launch.
Yahoo stole a little of Apple's thunder on Tuesday after revealing a Q4 net profit of $153 million, putting its total 2009 profit 43% up on 2008.
On Wednesday Boeing also showed a sharp rise in fourth-quarter revenue, up 42% year-on-year. And in the UK, higher revenues and cost cutting measures helped BSkyB's first-half profit jump 30% year-on-year on Thursday.
Pharmaceutical blue-chip AstraZeneca showed rather less positive prospects, however, announcing on Thursday that despite strong yearly results they would be laying off a further 8000 employees.
Earlier in the week the US retail giant Wal-Mart showed similar cost-cutting tendencies, revealing plans to axe 11,200 jobs at its Sam's Club chain.
Monday's December US home sales showed a sharp month-on-month fall in the wake of the 30 November tax credit deadline.
Despite the lull, sales were still up on the same period in 2008, indicating an increased confidence mirrored in Tuesday's consumer confidence index rise. US house prices were also on the increase, showing 0.2% seasonally-adjusted monthly growth for November.
On Wednesday the Fed kept interest rates at their 0-0.25% all-time low, while President Obama's State of the Union address emphasised the need for Wall Street reform and promised to put job creation at the forefront of his agenda.
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Weekly Trading Report 1 February 2010 - The Week Ahead
Indicators
After the UK’s tepid emergence from recession analysts will be looking to Monday's mortgage and consumer credit data for stronger signals that the economy is out of the woods.
Thursday sees the MPC's interest rate announcement, and with the rate having been kept on hold for the past 11 months few are expecting any change.
On the US schedule, look out for the Challenger job-cut survey on Wednesday followed by the all important non-farm payrolls which close out the week.
Company Results and Reports
The US reporting season continues apace with Pepsi releasing fourth-quarter results on Tuesday, followed by Time Warner and Western Union midweek.
At home keep an eye out for energy giant BP's full year figures on Tuesday, followed by pharmaceutical giant GlaxoSmithKline reporting on Thursday.
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For previous weeks see below.
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'Financial Spread Betting 1 February 2010', Review by D. Jones, last update: 1-Feb-10
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