A brief look at last week and the week ahead, the Weekly Review from IG Index.
Weekly Trading Report 24 May 2010 - Last Week's Trading Highlights
Ongoing European debt concerns and a surprise move from Germany to ban short selling precipitated a slump across global markets last week.
The FTSE plummeted 2.8% to 5062.93 on Wednesday, before a further fall on Friday saw the UK’s blue-chip index slip below 5000 for the first time since November 2009, eventually closing at 5060.54 after a slow rise over the afternoon.
It had been a steady week in the markets until Wednesday morning, when Germany unveiled its unexpected ban on naked short selling of major banks and government bonds.
After the Euro hit a four-year low against the Dollar of $1.22 on Monday, Chancellor Angela Merkel warned of potential serious consequences for the Euro if challenges are not met.
On Thursday Ms Merkel went on to stress the importance of stringent banking regulations, while across the Atlantic the US government also took a stance against future financial failings, passing a Wall Street-contested bill on Friday that outlines the broadest overhaul of financial regulations since the 1930s.
Meanwhile as the UK settled into its new political landscape, George Osborne called an emergency Budget for 22 June to try and tackle the country’s deficit.
There was a glimmer of positive news from the ONS on Friday, after last year’s borrowing was revised down from £163.4 billion to £156 billion.
Meanwhile the UK’s inflation rate reached its highest level in 17 months at 3.7% – well above the 2% target.
It was a dramatic week for British Airways, as the airline fought unsuccessfully to block the latest round of cabin crew strikes. The injunction was initially granted, but union Unite launched a successful appeal and strikes are due to go ahead early next week.
The airline posted a record loss of £531 million on Friday, its worst since privatisation in 1987. The cost of strike action was an estimated £43 million, and the upcoming strikes are sure to hit the airline’s finances even further.
IG Index
- Live Prices, Charts, Indices, Equities, Commodities, Forex and more >> read the
IG Index Review.
Weekly Trading Report 24 May 2010 - The Week Ahead
Indicators
With many big names mid-way between major economic markers, the first report likely to make waves this week is Marks & Spencer’s yearly result on Tuesday.
Further indications of high-street performance come by way of full-year reports from Burberry and JJB Sports on Wednesday and Thursday respectively.
Expectations are high for Thursday’s first-quarter data from Antofagasta, while Man Group’s figures will be heavily scrutinised on Thursday following their takeover of fellow hedge fund GLG Partners.
Company Results and Reports
The big economic releases don’t get started until Tuesday, with the UK’s crucial GDP data shining a light under the rock of the British economy.
US GDP figures follow on Thursday, and together with May Chicago PMI data on Friday ought to give a reasonable indication as to whether predictions of US growth are justified.
The above content does not constitute investment advice. Neither Online-Spread-Betting.com nor IG Index accepts any responsibility for any use that may be made of the above.
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.
IG Index
- Live Prices, Charts, Indices, Equities, Commodities, Forex and more >> read the
IG Index Review.
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 24 May 2010', Review by D. Jones, last update: 24-May-10
Related articles:
Online Spread Betting, 6-Jun-11,
Online Spread Betting News: Highlights of last week's spread betting markets and a look at the factors that will influence the week ahead plus company releases, economic news and...see: Online Spread Betting
Financial Spread Betting 4 April 2011, 4-Apr-11,
Financial Spread Betting 4 April 2011: Construction firms were on the rise, with building supplies firm Wolseley returning to profit in the first half of the year and house builder Bellway reporting profit up...see: Financial Spread Betting 4 April 2011
Financial Spread Betting 21 March 2011, 21-Mar-11,
Financial Spread Betting 21 March 2011: On Thursday the Japanese yen reached ¥76.25 against the US dollar, its highest level since the end of World War II. The BoJ continued to pour in further funds to stabilise...see: Financial Spread Betting 21 March 2011
Looking to improve your trading results? Get free trading tips and trading analysis as well as the latest trading offers »
Trading News.
Risk Warning:
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.
Disclaimer:
Online-Spread-Betting.com does not endorse the information and
analysis available on this site. It is provided purely for information
purposes and is delivered as a personal view of the writer. Under no circumstances
is the information hereon to be used or considered as, an offer to sell, or a
solicitation of any offer to buy. The website content does not constitute investment
advice and neither the individual contributor nor Online-Spread-Betting.com accepts any
responsibility for any use that may be made of the content.
* Tax Free Trading:
Tax law is subject to change. It may also differ if you pay tax in a jurisdiction outside the UK.
