Weekly Trading Report 29 November 2010 - Last Week's Trading Highlights
The financial spread betting markets were dominated last week by Irish debt concerns and escalating tensions on the Korean peninsula. Ireland’s decision to accept a large EU bailout failed to cheer investors due to Eurozone debt contagion fears, with Portugal and Spain the next likely dominos to fall.
Negative sentiment was compounded on Tuesday with the news that North Korean artillery shells left four dead on a South Korean island. Geopolitical uncertainty from both events weighed on equities, with the FTSE closing at 5581 on Tuesday, its lowest level for seven weeks, while the Dow dropped 142 points on the same day.
Fortunately for bullish investors, a raft of broadly positive economic data from the US served to steady the ship ahead of the Thanksgiving holiday on Thursday. Initial jobless claims in the week to 20 November dropped to 407,000, their lowest level since July 2008, while the index of consumer sentiment rose from 67.7 in October to 71.6 in November.
GDP figures were also encouraging from both sides of the Atlantic, with the US economy expanding at a 2.5% annualised rate, revised from an initial 2%, and UK numbers bang on expectations growing 0.8% in the third quarter and 2.8% for the year.
Company reports at home were varied last week, with Antofagasta, Dixons and Mitchells & Butlers reporting contrasting fortunes. The mining giant surpassed expectations with an astonishing year-on-year Q3 EBITDA of 74%, while retailer and pub group both lost ground with pre-tax losses of £7.9 million for the half year and £127 million for the full year respectively.
Due to Thanksgiving, the US calendar was largely quiet, excepting reports from Hewlett Packard and Tiffany & Co . Both comfortably beat forecasts, posting Q4 and Q3 year-on-year net profits of 5% and 27% respectively, giving retailers hope of a strong Q4 earnings season and a potential ‘Santa Rally’ in the lead up to Christmas.
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Weekly Trading Report 29 November 2010 - The Week Ahead
Indicators
There’s a wealth of UK economic data to cram in before the end of the year and Monday witnesses the release of money supply figures, mortgage approvals and consumer credit data.
On Tuesday keep an eye on the latest consumer confidence numbers, while manufacturing and construction data midweek will be watched closely. It’s also a full roster across the Atlantic, where investors’ attention will focus on the Fed’s Beige Book on Wednesday, and Friday’s non-farm payrolls.
Company Results and Reports
If you’re looking to spread bet on shares, look out for annual updates from travel giants Thomas Cook on Wednesday and TUI Travel on Thursday. Soft drinks firm Britvic also unveils yearly numbers on Thursday, while brewer Greene King close the week with half-year figures on Friday.
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.
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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 29 November 2010', Review by D. Jones, last update: 29-Nov-10
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