Utility firms push US stocks higher May 10, 2011 US stocks rose for a third day yesterday, led by utilities and other defensive sectors that may drive further gains as investors bet on profit growth and set aside concerns about weakening demand. For now the equity market is filtering out potential problems involving Eurozone debt and speculation that the recent selloff in commodities is [...]
Sterling looks weak but not as frail as the euro and dollar May 10, 2011 STERLING has had a tough year. An underwhelming recovery and loose monetary policy from the Monetary Policy Committee (MPC) have had their impact, neither of which looks to be imminently reversed. But bad as things are, the monetary authorities in the US appear to be wedded to keeping interest rates lower for longer than the [...]
GREEK DRAMA COULD LEAVE EURO IN LIMBO May 10, 2011 WHAT a difference a week makes. Last Wednesday, euro-dollar at $1.5000 looked inevitable, as rate hikes were the only focus of the market. This week, all eyes are on the debt problems in Greece, as fears about its exit from the euro have the pair trading much closer to the $1.4000 figure. Greece, which appears [...]
THE TIPSTER May 10, 2011 THE last week has been volatile, with the euro dropping more than six cents against the US dollar. The return of the Greek debt problem added an extra twist, but there are early signs of calm returning. Eagle-eyed chartists have also spotted a head and shoulders pattern over the last day – believed by some [...]
Euro versus dollar: a scrappy fight May 10, 2011 OVER the last fortnight, the euro-dollar pairing has turned into a bit of an ugly dog contest, with both sides competing to see who carries the fewest fleas. However, the euro came out second best in this challenge last week, hit with attacks from all sides. The tipping point for the pairing came when the [...]
FOREX ANALYST PICKS May 10, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Long dollar-Swiss franc and dollar-Canadian dollar Expertise: Fundamental and Technical Analysis with Risk Management Average time frame of trades: 1 day to 1 week Both the long euro-sterling and short euro-Canadian dollar setups we laid out last week saw quick, short-term gains; but the event risk the euro is [...]
Something is rotten in the state of Europe May 10, 2011 IT ALMOST seems that we have got to the point where billion-euro bailouts are relegated to the same news level as dogs waterskiing and images of Nick Clegg found on a piece of toast. But with the Greek debt at €110bn, Irish at €85bn and Portuguese at €78bn, these are not trivial sums. As the [...]
Weak banks and fears over Eurozone debt drag on FTSE May 9, 2011 BANKING stocks weighed on Britain’s leading share index yesterday, with the sector hit by their capitulation in a fight over loan insurance mis-selling, and by Eurozone debt concerns after S&P cut Greece’s credit rating. The British Banking Association said members would not appeal a ruling that they compensate customers wrongly sold payment protection insurance (PPI). [...]
Commodity gains boost Wall Street May 9, 2011 US stocks rose yesterday as commodity-related shares rebounded from last week’s collapse, masking deeper doubts about what will sustain the market’s long-term strength. Last week a massive sell-off in materials and oil forced investors out of high-risk assets, and stocks ended down about one per cent for the week. The commodity market slump comes at [...]
Profit but avoid being caught in an oil slick May 9, 2011 IF YOU thought that you were nursing a financial hangover from last week’s commodity crash, spare a thought for Clive Capital. The world’s largest commodity hedge fund was left with losses of more than $400m (£240m) after being caught short (or long as the case may be) in the oil price collapse on Thursday. Moves [...]