Weekly Trading Report 4 October 2010 - Last Week's Trading Highlights
Financial markets struggled to make headway after a flurry of merger activity early in the week was outweighed by renewed global economic recovery concerns. Unilever gained 1.3% on Monday after it agreed a deal worth £2.3 billion for US consumer goods firm Alberto Culver.
On the same day, the world’s biggest retailer, Wal-Mart, confirmed talks were underway to secure a $4.1 billion agreement for South African wholesaler Massmart. Further M&A activity in a busy start to the week saw US low-cost carrier Southwest Airlines tie up a $1.4 million deal for AirTran, while PZ Cussons announced the purchase of St Tropez for £62.5 million.
On Tuesday official data confirmed that the UK economy grew by 1.2% in the second quarter, its fastest rate of expansion for nine years. The ONS also upwardly revised Q1 growth from 0.3% to 0.4%, while across the Atlantic US Q2 GDP was also upgraded, from 1.6% to 1.7%.
Any confidence generated by these figures, however, was soon submerged in a double dose of Eurozone gloom on Thursday.
Spain was hit by a credit ratings downgrade from Moody’s, meaning all three of the major global ratings agencies have downgraded the country’s sovereign debt rating this year. This was followed by news that the Irish government would need to raise €29.3 billion to bail out the troubled Anglo Irish Bank.
With various Eurozone member governments battling to reduce national debts, Brussels was the scene for mass protests over spending cuts on Wednesday. Germany managed to provide some relief though, after the country’s GfK consumer confidence index reached a three-year high on Tuesday.
Elsewhere in spread betting markets, it was a quiet week for FTSE company reports. Wolseley announced a significant reduction in annual losses, from -£766 million to -£328 million on Monday. The world’s largest plumbing and heating group also revealed its plans to set up a holding company in Switzerland, intended to help reduce its corporate tax bill.
IG Index
- Live Prices, Charts, Indices, Equities, Commodities, Forex and more >> read the
IG Index Review.
Weekly Trading Report 4 October 2010 - The Week Ahead
Indicators
In a busy schedule at home all eyes will be on the BoE’s interest-rate announcement at midday on Thursday, with the MPC widely expected to maintain rates at 0.5% for a 19th successive month.
The ECB rate decision follows shortly after. Also look out for industrial and manufacturing figures on Thursday and PPI numbers on Friday.
The US spotlight falls on the Challenger job cuts report midweek, followed by Friday’s all-important non-farm payrolls data.
Company Results and Reports
The UK retail sector will attract investors’ attention with quarterlies from Marks and Spencer and Dunelm midweek and Halfords on Thursday, while Ted Baker also releases half-year numbers.
Supermarket giants Tesco and J Sainsbury go head-to-head on Tuesday and Wednesday respectively, while on Thursday UK and US miners Vedanta Resources and Alcoa unveil six-month and Q3 results.
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 4 October 2010', Review by D. Jones, last update: 4-Oct-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.
