Further failed attempts to close the Deepwater Horizon leak, together with the launch of a US criminal investigation into the spill, saw the oil giant’s share price slide over 17% at its lowest point on Tuesday.
However, despite Thursday’s credit ratings downgrades, the placement of a containment cap onto the wellhead, coupled with speculation that the company would still pay a dividend, sent the oil giant to the head of the FTSE leaderboard on Friday.
Positive economic data from the US helped leading indices rise midweek, prompting the Dow Jones to add 226 points (+2.3%) to 10249.54.
Wednesday’s stronger-than-expected 6% rise in April’s pending home sales, to a six-month high, along with new car sales data for May which came in 19% higher year-on-year, reinforced appearances of US economic strength.
Further upbeat data followed on Thursday, with confirmation of factory output and service industries growth. However, Friday’s closely watched Non-Farms payroll data provided a setback; the addition of 431,000 jobs last month was well short of expectations for a 513,000 rise. Financial markets dropped sharply at the news, with the Dow giving up 1.6% in early trading.
European markets rose earlier in the week under the influence of their US counterparts, but there was otherwise little improvement in economic data. On Tuesday Eurozone unemployment hit a fresh high of 10.1% for April, while the contrast between US growth and EU instability saw the Euro slump to a four-year low against the Dollar.
In the UK, Halifax’s housing data on Friday revealed prices slid by 0.4% in May, falling for the second month in a row. Halifax said the data was consistent with a slowing market, but that it was unclear whether this was a temporary blip or the beginning of a new decline.
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Weekly Trading Report 7 June 2010 - The Week Ahead
Indicators
This week sees the Bank of England decisions on interest rates and the Asset Purchase Facility (APF).
Most analysts are expecting to see the current 0.5% rate unchanged and continued support of the credit markets through the £200 billion APF; both pieces of data are due on Thursday.
For an insight into the state of the US economy, keep an eye out for the Fed’s Beige Book report on Wednesday.
Company Results and Reports
Company news is fairly thin on the ground, especially in the US.
At home however, look out for a full-year report from online fashion and beauty retailer Asos, and half-year numbers from Argos and Homebase owner Home Retail Group, on Wednesday and Thursday respectively.
In a busy week for retailers, WH Smith and Halfords also unveil quarterlies.
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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 7 June 2010', Review by D. Jones, last update: 7-Jun-10
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
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