Weekly Trading Report 6 September 2010 - Last Week's Trading Highlights
After a torrid beginning to the week, global financial markets staged a recovery as upbeat economic data and continued merger activity boosted sentiment.
As the UK was enjoying its bank holiday, renewed fears over the health of the US economy led to the Dow Jones dropping 141 points (-1.4%) to 10009.7, while falls in Asia were led by the Nikkei, which plunged 3.6%.
After an early deficit, the FTSE 100 managed an intraday about-turn on Tuesday, thanks to a bigger-than-expected increase in net consumer credit, and a month-on-month jump in mortgage approvals to 48,700, surpassing consensus expectations of 46,500.
There was a further boost of sorts on Tuesday, after GfK’s survey showed an improvement in UK consumer confidence during August, though the -18 reading remains in negative territory overall.
The US Conference Board’s equivalent survey similarly depicted a more optimistic outlook among its consumers than predicted, with a reading of 53.5 against expectations of 51.
Investors took further reassurance from an improvement in the S&P 500/Case-Shiller index showing an increase in the house prices of 20 major US cities.
In addition, Wednesday’s surveys, showing faster-than-expected growth in US and Chinese manufacturing, helped both the Dow and FTSE to climb in excess of 2.5%.
The FTSE spread betting market was also boosted midweek by takeover talk concerning TUI Travel. The travel firm’s shares climbed 7.5% to 216p on Wednesday after reports that TUI’s parent company was considering an offer for the remainder of the company it doesn’t already own.
Further bid conjecture followed on Thursday, as Autonomy Corporation saw its shares leap 5.2% to 1716p, helping the technology firm into the day’s top two blue-chip risers.
In the US, Burger King was the subject of a successful bid by 3G Capital, valuing the fast food outlet at $3.26 billion.
Closing the week, the key Non Farm payrolls showed 54,000 jobs were shed in the US last month, though the 67,000-strong rise in private sector roles provided encouragement.
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Weekly Trading Report 6 September 2010 - The Week Ahead
Indicators
Thursday stands out as the major day for macroeconomic news with the Fed Beige Book report preceded by the Bank of England’s latest interest-rate decision.
Other significant data to look out for in the UK include manufacturing and industrial production figures midweek, and July’s trade balance on Thursday.
Company Results and Reports
A quiet reporting week in the US is offset by some notable announcements at home.
On Tuesday blue-chip hospitality firm Whitbread releases half-year figures, while on Thursday look out for annual results from Thorntons, six-month figures from supermarket chain Morrisons and a trading update from Argos owner Home Retail Group.
In the property sector, Barratt Developments and Redrow unveil annual numbers on Wednesday and Thursday respectively.
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 September 2010', Review by D. Jones, last update: 6-Sep-10
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