Weekly Trading Report 22 November 2010 - Last Week's Trading Highlights
The FTSE 100 fell 138.51 points (-2.38%) on Tuesday as Ireland's fiscal woes took centre stage, with concerns over Irish government debt spooking bankers. Miners and commodities were also hit by lingering fears over a rise in Chinese interest rates.
The financial spread betting markets showed signs of recovery by Thursday as talk of an EU bailout plan for Ireland sent the euro up against the dollar, and China announced food control plans to control double-digit inflation. However, the rally failed to last as bankers and miners dragged the UK's blue-chip index down on Friday, finishing off a rollercoaster week.
The MPC minutes showed a three-way split at this month's meeting, although the majority again voted for no change to interest rates and no additional stimulus spending. BoE policymakers are expected to remain in 'wait and see' mode, with one eye on the UK's inflation rate, which surprisingly rose to 3.2% last month.
Meanwhile the CML warned that UK mortgage lending has dropped 9% since October 2009 in the weakest performing October for ten years. According to the DCLG on Tuesday house prices have also declined in the three months to September, as banks restrict credit and consumers face deep government spending cuts.
Across the pond, a surge in US manufacturing and retail activity was well received by investors. Budget brand Wal-Mart posted a 9% year-on-year third-quarter profit jump on Tuesday, thanks mainly to strong overseas performance.
Closer to home, easyJet saw profit nearly triple as it continued to gain market share from rivals. The low-cost airline announced plans to pay its first-ever dividend, potentially netting Sir Stelios around £10 million a year.
Meanwhile, Majestic Wine and SABMiller unveiled first-half profit rises of 20% and 13% against last year respectively. SABMiller cited thirsty sales growth across emerging markets as a key contributor, and Majestic pointed to the 'enduring British love affair with food and wine'.
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Weekly Trading Report 22 November 2010 - The Week Ahead
Indicators
Tuesday is the big day for economic data in the US, with existing home sales and preliminary GDP figures due out, along with the minutes from November's FOMC meeting. Investors will be scrutinising these especially for indications of how the QE2 decision was reached.
In the UK, the recovery will be examined on Wednesday when revised GDP figures for the third quarter are released.
Company Results and Reports
With the US between reporting seasons, and the Thanksgiving holiday falling on Thursday, it is a very quiet week on the company calendar. Hewlett-Packard and Tiffany & Co are the week's main attractions, announcing Q4 and Q3 earnings on Monday and Wednesday respectively.
At home it is slightly busier, with Dixons and Antofagasta among those releasing reports on Thursday, while pub group Mitchells & Butlers unveil full-year numbers on Tuesday.
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Remember that financial spread betting is a leveraged product and can result in losses that exceed your initial deposit. Spread betting may not be suitable for everyone, so please ensure that you fully understand the risks involved.
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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 22 November 2010', Review by D. Jones, last update: 22-Nov-10
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