BUGS SHOULD NOT GIVE UP ON GOLD YET February 9, 2010 AS GOLD fell sharply last week while the dollar rose, it attracted a chorus of I-told-you-so critics who pointed to gold’s rapid decline as proof that the metal was a poor source of safety in times of market turbulence. In the short term, the critics are correct. At present the dollar, not gold, is the [...]
THE LONDON REPORT February 9, 2010 BRITAIN’S top share index closed up yesterday, led higher by miners and banks, but lingering concerns over Europe’s fiscal problems weighed on sentiment. The FTSE 100 ended 19.51 points or 0.4 per cent ahead at 5,111.84, having hit a session high of 5,132.93. Metals prices regained some ground after sharp falls last week, helping mining [...]
THE NEW YORK REPORT February 9, 2010 THE Dow posted its largest one-day percentage gain in three months yesterday, boosted by reports of an aid plan for heavily indebted Greece. A senior German ruling coalition source said euro zone governments have decided in principle to help Greece, comments that calmed investors worried about a threat to global economic stability. “There’s a relief [...]
Recent sell-off reason to buy oil, not short it February 8, 2010 AFTER a week where the price of crude oil futures slid to below $70 a barrel and oil giants disappointed the markets with poor earnings and weak outlooks, contracts for difference (CFDs) traders might be finding it difficult to justify going long on crude right now. The markets are still cautious – sovereign debt crises [...]
IT’S STILL TOO EARLY TO STOP THE STIMULUS February 8, 2010 WE ARE two-thirds of the way through the US fourth-quarter earnings season and 74 per cent of S&P 500 firms that have already reported have beaten analysts’ estimates. A further 9 per cent were in line while 17 per cent of companies fell short. The earnings season has not been good enough so far to [...]
Benefit from yield not price February 8, 2010 THE outlook for the FTSE 100 looks bleak. Lacklustre economic growth and the prospect of rising taxes have all helped push the index down by nearly a tenth since the start of the year. With massive profits unlikely to come from stocks themselves, investors should be looking for good dividend yields. Despite the gloomy outlook, [...]
CFD ANALYST PICKS February 8, 2010 TECHNICAL STRATEGIST JOEL KRUGER My pick: Buy oil at $68 Expertise: Technical analysis Average time frame of trades: 5-10 days Explanation: The oil price has more or less been trading in a choppy consolidation over the past several months, without moving too far in any one direction. While we still see room for additional falls [...]
Rallying miners offset weaker finance firms to help the FTSE 100 edge up February 8, 2010 BRITAIN’S top share index closed 0.6 per cent higher yesterday, as gains in rebounding miners and strength in defensive issues more than offset weaker financials, which were weighed by ongoing eurozone debt issues. The FTSE 100 rose 31.41 points at 5,092.33 in choppy trade. The index fell 2.5 per cent last week, its fourth straight [...]
Eurozone debt concerns push Dow below 10,000 February 8, 2010 THE Dow industrials closed below 10,000 for the first time since November yesterday as investors sold bank shares due to heightened concerns about the eurozone’s sovereign debt troubles. Bank of America shares lost more than three per cent, while JPMorgan slipped 1.6 per cent, and Citigroup shed 2.2 per cent. The S&P financial index dropped [...]
ECONOMIC DIARY February 7, 2010 AFTER the Bank of England announced that it would be pausing, at least for now, its quantitative easing policy, the big event in the UK this week will be the quarterly inflation report on Wednesday morning. The Bank is expected to revise down its growth forecast while revising up its inflation predictions and will give [...]