Carry trade bubble will burst, so be prepared November 3, 2009 DESPITE his notorious doomsaying, everybody does sit up and pay attention to Professor Nouriel Roubini’s views on the market. And earlier this week, he argued that the mother of all carry trades – borrowing dollars and using the proceeds to invest in countries with higher interest rates – faces an inevitable bust, with problems for [...]
JOBS CRUCIAL TO SUSTAIN US RECOVERY November 3, 2009 BORIS SCHLOSSBERGDIRECTOR OF CURRENCY RESEARCH, GFT LAST week I wrote that the recovery trade was starting to hit a ceiling as risk assets stalled at key resistance levels of 10,000 on the Dow, 1,100 on the S&P 500 and 1.50 for euro-dollar. Despite relatively positive economic data from across the G20 this week, the risk [...]
THE TIPSTER November 3, 2009 THE Bank of England’s Monetary Policy Committee (MPC) begins its meeting today to decide whether its QE policies should be extended further. Sterling has fared better than might have been expected, but given the poor economic data and banking sector woes, pressures on sterling remain to the downside. With analysts revising US non-farm payrolls upwards, [...]
Miners and oils jump on improved commodity prices November 2, 2009 BRITAIN’S top shares closed 1.2 per cent higher yesterday, as miners and oil firms rose, underpinned by firmer commodity prices on the back of bullish economic data, while RBS fell as the lender faces asset sales. The FTSE 100 closed 59.95 points higher at 5,104.50 points, recouping some losses from Friday’s 1.8 per cent fall. [...]
Robust economic data buoys Wall St November 2, 2009 US STOCKS rose yesterday after another round of solid economic reports, but pulled off session highs after a Fed official’s warning about banks’ loan losses. The three major indexes had previously risen about 1 per cent earlier in the session as stronger-than-expected data on manufacturing and pending home sales spurred a broad-based advance and soothed [...]
The emerging economies are best bet for the long term November 2, 2009 ONCE plagued by fears of debt defaults, currency devaluations and political instability, emerging markets are now an indispensable part of every reward-seeking investor’s portfolio. That, at least, was the message from Marino Valensise, chief investment officer at Baring Asset Management yesterday. He said: “While we believe that the rally in equities is set for a [...]
FOR BRITISH STARS, LOOK TO THE 250 November 2, 2009 MARTIN SLANEYHEAD OF DERIVATIVES, GFT THE FTSE 100 index CFD has always been one of the most popular CFDs for UK traders. It is, after all, the blue chip index that gets the most media coverage. Yet if you really want to trade a UK index, it’s not the FTSE 100 you should be following [...]
Traders look to hedge fund guru for lead on Barclays November 2, 2009 AFTER eight months of holding onto his 1.5 per cent stake in Barclays, one of London’s top hedge fund managers announced last week that he has sold his stake in the high-street bank, which has risen in value by 550 per cent over the period. Crispin Odey, head of Odey Asset Management, cited uncertainty over [...]
Week to start with a nervy sell-off after Wall St plunge November 1, 2009 UK and European indices are set to head lower this morning, in a week that is likely to be characterised by volatile trading amidst uncertainty over global economic cues. GFT is quoting the FTSE 100 index to open down 40 points from Friday’s close of 5,044. The German DAX is also called lower, down 24 [...]
ECONOMIC DIARY November 1, 2009 Monday 2 NovemberUK:October PMI Manufacturing (9.30am)Eurozone:October PMI Manufacturing (9.00am)US: October ISM Manufacturing (3pm)September construction spending (3pm) Tuesday 3 NovemberUK:October PMI Construction (9.30am)US:September factory orders (3pm)ABC consumer confidence (10pm)October total vehicle sales anddomestic vehicle sales (10pm)Federal Reserve’s Open Market Committee (FOMC) begins its meeting on interest rates Wednesday 4 NovemberUK: October Nationwide consumerconfidence (12am)October PMI [...]