Weekly Trading Report 6 December 2010 - Last Week's Trading Highlights
European markets suffered last Monday morning due to lingering debt worries, despite the announcement of an €85 billion bailout plan for Ireland the day before. The euro dropped 1.4% to a two-month low against both sterling and the dollar, while the FTSE, Dax and CAC 40 all lost more than 2% on the day.
Concerns intensified on Tuesday as yields on Spanish, Italian and Belgian bonds dropped to 12-year lows. Markets recovered strongly towards the end of the week however, following a successful bond auction in Portugal, and ECB chief Jean-Claude Trichet’s comments that the bank’s liquidity operations would remain in place until at least March next year.
With all that happening in Europe, the FTSE 100 had an eventful week. The index sank to its lowest level since mid-September, closing at 5528 on Tuesday, before adding an aggregated 240 points on Wednesday (+2.07%) and Thursday (+2.22%), with banks making strong gains as European debt concerns eased.
Unexpected manufacturing growth further boosted the FTSE on Wednesday, as UK PMI rocketed to a 16-year high in November. The week closed with US unemployment rising to 9.8%, its highest rate since April, while only 39,000 jobs were created in November.
On Monday, BP announced plans to sell its 60% stake in Pan American Energy. The sale will raise £4.5 billion and is the company’s biggest asset sale since the Deepwater Horizon oil spill.
Travel companies Thomas Cook and TUI Travel reported disappointing full-year figures on Wednesday and Thursday respectively, with both citing difficult trading conditions in the UK and Ireland. Pre-tax profit at Thomas Cook was down 7.5% from the previous year, while TUI reported a year-on-year pre-tax loss of £36 million.
Elsewhere in the financial spread betting markets, pub owner Greene King returned successful first-half figures on Friday, with half-year pre-tax profits up 17% on last year’s results.
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Weekly Trading Report 6 December 2010 - The Week Ahead
Indicators
It’s a quiet week on the economic calendar, but look out for the latest UK industrial and manufacturing production data on Tuesday, especially after UK PMI hit a 16-year high in November.
The MPC’s latest rate decision is expected on Wednesday, though no surprises are anticipated at this stage. Across the Atlantic, expect to see the University of Michigan consumer sentiment survey in the spotlight on Friday.
Company Results and Reports
With company news slowing down, look to Kesa Electricals and Stagecoach as they release their six-month reports on Wednesday, and also HMV, which unveils half-year accounts on Thursday.
Elsewhere in the shares spread betting markets, US military contractor SAIC – recently awarded several US government contracts upwards of $40 million – and wholesaler Costco will be revealing respective third- and first-quarter updates on Wednesday.
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 6 December 2010', Review by D. Jones, last update: 6-Dec-10
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