Weekly Trading Report 4 April 2011 - Last Week's Trading Highlights
Last week, in a calmer week for global markets, the FTSE 100 climbed steadily back to the 6000 level, finishing the week at 6009.92.
While Tuesday’s Q4 2010 GDP revision from -0.6% to -0.5% did little to challenge sentiment, service sector performance for January rose sharply on Wednesday. Together with the previous day’s consumer borrowing increase, the data prompted cautious optimism for 2011.
Construction firms were also 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 26% over the same period, on Tuesday and Wednesday respectively.
Friday brought less encouraging news, as manufacturing activity in March fell from 61.5 to 57.1. Expectations were for a smaller drop to 60.9.
The previous week’s fears regarding Portugal’s financial stability continued to trouble Europe, as the country missed its 2010 budget deficit target and pressure to accept financial aid increased. Focus switched to Ireland as the week continued, however, as Thursday’s stress tests revealed the vast scale of Ireland’s banks’ capital shortage.
Irish banks would require a further €24 billion in order to survive, increasing the likelihood that Ireland would default on sovereign debt. Ireland’s only nugget of positive news came on Friday as manufacturing in March continued to expand with a 55.7 reading.
Oil prices were on the rise again, hitting a 30-month high on Friday as fighting near Libyan ports sparked supply concerns and US economic strength increased potential demand.
On Monday US consumer spending hit its fastest pace in four months with a 0.7% increase, while the Dallas Fed manufacturing production index leapt to 24.1 from 9.7 last month.
Tuesday’s S&P/Case-Shiller index, however, revealed a drop in house prices for the seventh month in a row. Wednesday’s Challenger report showed an 18% drop in job cuts, data that Friday’s non-farm payrolls supported with a March employment boost of 216,000 jobs, higher than the 190,000 gain expected.
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Weekly Trading Report 4 April 2011 - The Week Ahead
Indicators
The week begins with March construction and services PMI figures in the UK today and tomorrow respectively, followed by February’s industrial and manufacturing production figures midweek.
On Thursday, the ECB could raise Europe’s main interest rate by a quarter of a percentage point, while at home the MPC’s decision will be closely watched following last month’s 6-3 vote split.
Company Results and Reports
It’s a quiet week for companies, with investor interest in the UK likely to be focused on full-year figures from mining and metals giant Vedanta Resources on Friday.
Across the Atlantic it’s equally uneventful, but look out for quarterlies from Monsanto and Bed Bath & Beyond on Wednesday, plus Constellation Brands 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 4 April 2011', Review by D. Jones, last update: 4-Apr-11
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