Keep your eyes open for black swans in the coming year December 21, 2009 1 Israel takes out Iranian nuclear capacity, triggering a popular uprising, which causes the government of Mahmoud Ahmadinejad to be overthrown. Western businesses begin to look more positively on the less volatile Middle Eastern region, especially oil companies and other utilities providers which can now operate in a more stable environment. This is positive for [...]
Gold loses its shine as positive US data signals move away from safety December 21, 2009 NOW could be the time to go short on gold. After a stellar performance during 2010 when the precious metal reached a record high of more than $1,200, the positive trend could be about to come to an end. Investors sold off gold futures yesterday as markets await a spate of economic data releases from [...]
PREPARE FOR A BOOM IN SILVER PRICE December 21, 2009 THE US dollar’s reversal of fortune has been swift and violent. The sudden shift in sentiment since the beginning of the month has caught many investors by surprise. What began as a correction to the steady and seemingly relentless decline of the greenback against everything but the yen has become more akin to a rout. [...]
Improved GDP numbers will add to the growing confidence in sterling December 21, 2009 ALL the signs are pointing to an upward revision to UK GDP growth this morning. The consensus among City economists is for a smaller 0.1 percent fall in GDP in the third quarter. But there is a real possibility that growth was actually stronger and could even have been flat on the quarter. A 2 [...]
THE TIPSTER December 21, 2009 MARKET liquidity is really thin this week and next due to the Christmas holidays, which means that you need to be aware of pockets of volatility. During this time of year you need to stick to the larger FTSE 100 equities that benefit from strong liquidity. Keep nice tight spreads or range trade the FTSE [...]
Taking a punt on industrial strife can be a winner December 20, 2009 THE High Court may have helped restore Christmas cheer for passengers of British Airways by ruling that the proposed 12-day strike by the airline’s cabin crew was invalid, but investors should arm themselves with trading strategies for a 2010 that could be rife with industrial action. But the dispute is far from over. After the [...]
Brazil’s stock index is well worth a bet December 20, 2009 SPEAK to any strategist at any investment bank and you will hear the common refrain that emerging markets will drive the global economy in 2010. While this is undoubtedly true, there is a tendency to blindly associate emerging markets with Asia – and China in particular. Spread betters should make sure they consider the whole [...]
EURO STATES’ STRIFE ADDS TO VOLATILITY December 20, 2009 JANE FOLEY RESEARCH DIRECTOR, FOREX.COM DURING 2009, the main story in the currency markets has been the decline of the dollar, dictating the movements of many dollar pairs. Euro-US dollar was driven almost exclusively by dollar fundamentals while issues this side of the Atlantic remained decidedly less relevant. But over the past couple of weeks, [...]
THE TIPSTER December 20, 2009 THE markets may have traded sideways for most of December but expect some volatility over the next couple of weeks. During the period between Christmas and New Year the markets can often move higher, which could benefit the FTSE 100. Capital Spreads offers a price of 5,245-5,246. The announcement of a new chief executive at [...]
Positive start to the week but a short trading session means no Santa Claus rally for markets December 20, 2009 Stocks are expected to start the week higher this morning, reversing a late dip on Friday when a late surge in the US dollar took its toll on mining stocks. GFT is forecasting the benchmark FTSE 100 index to open at 5,221, up 25 points from Friday’s close. The German DAX is called to open [...]