Weekly Trading Report 8 November 2010 - Last Week's Trading Highlights
Global indices soared last week after a number of positive indicators and results, including the Federal Reserve’s expected QE2 stimulus decision. The Fed’s midweek announcement to pump an extra $600 billion into the US economy helped the Dow to its highest level in more than two years, rising by 219.79 points (2%) to 11,434.84 on Thursday.
The FTSE climbed significantly, rising by 113.82 points (2%) to reach 5862.79, a high point not seen since June 2008. Sterling rose to $1.62, its highest level against the dollar since the beginning of the year, following the Bank of England’s decision not to pump further QE into the UK economy, while maintaining UK rates at 0.5%.
The US economy received a further boost after Friday’s US non-farm payroll figures came in better than expected. The net rise of 151,000 new jobs in October was considerably above estimates for a 60,000 gain.
Strong US and Chinese manufacturing data earlier in the week also boosted sentiment, helping crude oil prices reach a six-month high. Official data at home also provided encouragement – UK manufacturing output increased last month for the first time since
March, while the services sector index rose month-on-month to 53.2, confounding predictions of a fall. Meanwhile on Thursday Halifax said UK house prices rose 1.8% in October from September, after slipping 3.6% the previous month.
Elsewhere in the online spread betting markets, budget airline Ryanair kick-started a strong week for company results, after half-year profit rose 15% to €482.50 million thanks to an increase in passenger numbers. On Tuesday BP indicated its recovery from the oil spill losses, unveiling a $1.85 billion third-quarter profit, against a loss of $17 billion in Q2.
Lloyds and Stagecoach also announced upbeat statements on Tuesday, though Friday’s figures from RBS were less rosy after the 84% taxpayer-owned bank reported a quarterly £1.4 billion pre-tax loss. In the retail sector, Next warned that an ongoing ‘speculative bubble’ in cotton prices may force them to raise the prices of their products by up to 8% in 2011.
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Weekly Trading Report 8 November 2010 - The Week Ahead
Indicators
It’s a relatively quiet week on the economic calendar, but analysts will pay close attention to Wednesday’s BoE quarterly inflation report, especially after the announcement of QE2 in the US last week. UK industrial and manufacturing production data on Tuesday and eurozone GDP on Friday should also give an indication of the present health of the economy in the UK and on the continent.
Company Results and Reports
The retail sector is in focus this week, with Marks & Spencer and Associated British Foods releasing six-month and full-year figures respectively on Tuesday, while J Sainsbury follows with their six-month report on Wednesday.
On Tuesday telecoms giants Cable & Wireless Worldwide and Vodafone release half-year numbers, with BT unveiling their six-month update on Thursday. Quarterlies from Barclays on Tuesday and Macy’s and Walt Disney on Wednesday and Thursday complete a busy week on both sides of the Atlantic.
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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 8 November 2010', Review by D. Jones, last update: 8-Nov-10
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