A brief look at last week and the week ahead, the Weekly Review from IG Index.
Weekly Trading Report 5 July 2010 - Last Week's Trading Highlights
On Monday world leaders emerged from the preceding weekend’s G20 Summit having agreed to cut national deficits by 2013.
It was also agreed that banks must re-evaluate the capital they hold, although a muted market reaction suggests actions will need to speak louder than words.
By Tuesday, markets were in a panic over renewed European banking concerns and speculation that the Chinese recovery is not as strong as hoped. The FTSE 100 gave up 157 points (-3.10%) on Tuesday, while Wall Street closed 268 points (-2.65%) down, each crashing through the sentimental 5000 and 10,000 levels respectively in the process.
Further losses followed on Thursday as the FTSE lost another 111 points (-2.26%) after China’s PMI fell from 53.9 to 52.1 in June, indicating a slowdown in manufacturing growth.
In midweek, the Office for Budget Responsibility forecast that spending cuts could see 600,000 public sector jobs lost over the next six years, and Business Secretary Vince Cable had some bad news for the UK motor industry when he announced there will be significantly less financial support from government for the sector in the future.
Pharmaceuticals manufacturer AstraZeneca had a good week, however. The company won a court case in the US protecting a major cholesterol drug patent, resulting in a 7.5% stock price increase on Wednesday.
BP was in the news again, after it was announced that the cost of clean-up efforts in the Gulf of Mexico had reached £1.76 billion. More than 39,000 people have now been involved in the response effort.
On the forex markets, China moved to re-peg the Yuan at a five-year high, after previously saying it would make the currency more flexible.
The US House of Representatives approved a landmark financial reform bill on Wednesday, though the senate vote in mid-July is expected to be closer run.
The week closed on a slightly downbeat note, after the all-important US Non Farm payrolls came in marginally below expectations, with 125,000 jobs lost.
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Weekly Trading Report 5 July 2010 - The Week Ahead
Indicators
The services sector garners the week’s early economic focus with PMI data throughout Europe on Monday, when most US markets are closed for Independence Day.
In the Eurozone, final first-quarter GDP is announced on Wednesday, while on Thursday industrial and manufacturing data will be keenly monitored at home.
Also on Thursday, UK and European central banks are expected to keep interest rates at their current record low levels.
The UK economic schedule maintains its momentum as the week draws to a close, with PPI and trade balance announcements on Friday.
Company Results and Reports
In another quiet week for company announcements, IT services firm NCC Group announces annual results on Monday, before mid-cap FTSE 250 constituents Balfour Beatty, retailer N Brown Group and property company Daejan Holdings reveal figures midweek.
It’s a particularly slow reporting week across the Atlantic, where discount store Family Dollar announces quarterly data midweek.
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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 5 July 2010', Review by D. Jones, last update: 5-Jul-10
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