Investors go back to fundamentals as they lose their taste for carry February 16, 2010 IN THE second half of 2009, the dollar-funded carry trade was the primary strategy used to play the foreign exchange markets. The low interest rates set by the Federal Reserve combined with the weakening of the greenback meant that traders were happy to sell low-yielding dollars in search of higher-yielding currencies such as the Australian [...]
Volatile foreign exchange markets are back on the agenda for 2010 February 16, 2010 SIX months ago, it seemed that the worst of the global crisis was over. The markets had calmed down, the economic recovery appeared to be firmly on track and traders seemed to have regained their risk appetite. But just as we thought things were on the mend, a sovereign debt crisis in the Eurozone coupled [...]
Banks and commodities make gains as Wall Street is closed for public holiday February 15, 2010 BRITAIN’S leading shares rose 0.5 per cent yesterday, led by firmer banks and commodity issues after falls in the previous session, while British Airways climbed on increased hopes for a global alliance. At the close, the FTSE 100 was 25.02 points higher at 5,167.47, well below the session peak of 5,194.29. Blue chips drifted off [...]
European stocks boosted despite Greek concerns February 15, 2010 EUROPEAN shares closed higher yesterday, supported by gains in banks and miners while defensive food producers fell, but a lack of clarity over eurozone support for Greece was seen capping further gains for equities. The FTSEurofirst 300 index of top European shares provisionally closed 0.4 per cent higher at 991.76 points, after falling 0.3 per [...]
There’s still some sweetness left in the price of raw sugar this year February 15, 2010 IF THERE was any commodity guaranteed to provide sweet profits for traders in the second half of 2009 it was sugar. Raw prices have more than doubled since mid-2009 to almost 30 cents per pound at the end of January, their highest level since 1981. Like other commodities, sugar has since taken a bit of [...]
BULL OR BEAR, YOU NEED TO BE NIMBLE February 15, 2010 FOR anyone who found last year’s nine-month rally in global equities perplexing, or frustrating, then 2010 seems to have brought a hint of sanity back to the markets. The sell-off of the past few weeks feels like a vindication for those who have been suspicious of the strength of the equity rally since the beginning [...]
Nikkei avoids Toyota’s woes February 15, 2010 JAPANESE corporate culture has taken a beating in recent weeks as one of its biggest companies, Toyota, has recalled more than 9m vehicles worldwide over fears about faulty accelerator pedals, leaving its reputation in tatters. Contracts for difference (CFDs) traders might think that Toyota’s troubles would affect the Nikkei 225, Japan’s stock index, due to [...]
Debt woes expose Eurozone cracks February 15, 2010 FEAR of contagion has forced EU ministers to accept that they must support Greece and in doing so, they may manage to sweep the current crisis under the carpet. But whatever action is taken, it will not solve Greece’s structural problems. The real issue is that the country is not properly equipped to adhere to [...]
Doing the right thing: lawyers may be called upon to do more free work February 15, 2010 HOW about a Robin Hood tax for lawyers? This, or something rather like it, is one of the more provocative ideas being floated by human rights lawyer Sir Geoffrey Bindman in a new collection of essays entitled Closing the Justice Gap: Some New Thinking about an Old Problem. Bindman makes the case for a levy [...]
FIRMS NEED NEW WAYS TO RAISE CASH February 15, 2010 IT has not been good news of late for UK IPOs. First the US travel group Travelport pulled its £1.2bn London flotation after failing to win investors’ support in turbulent markets. The next day, Madame Tussaud’s operator Merlin Entertainment put its £2bn flotation on hold, with severe market volatility blamed for the delay. Fashion retailer [...]