US stock rise seen as over-extended July 26, 2009 ASTONISHINGLY, the Dow Jones Industrial Average (DJIA) has remained above the 9,000 mark after breaching the psychological level on Thursday evening for the first time for what felt like ages. Back in early March when the Dow plummeted to 6,440.08, only the ultra-bullish investors thought 9,000 would be on the cards this year. But after [...]
Successful day traders choose their stocks with precision July 26, 2009 THE market volatility we have experienced over the past 18 months or so has encouraged private investors to try their hand at the fast-moving, risk-riddled strategy of day trading because of the large daily moves in stocks combined with overnight uncertainty. And opportunistic spread betters have been all too keen to jump on the back [...]
UK DEFICIT TO HINDER RISE OF STERLING July 26, 2009 JANE FOLEYRESEARCH DIRECTOR, FOREX.COMECONOMICS textbooks would have you believe that a currency should adjust lower if it belongs to a country with a large current account deficit or an increasing budget deficit and for years US dollar bears have been citing the current account deficit as a reason why the greenback should depreciate. In 2008 [...]
FTSE 100 hits a yearly high on cheery earnings season July 23, 2009 THE FTSE 100 broke through the 4,500 level yesterday as it rose for the ninth straight day on the back of positive economic data and a rally in banks and miners. The index rose by 66.07 points, or 1.5 per cent, to 4,559.80, the highest closing level since early January, having touched a high of [...]
Wall Street cheers as markets surge July 23, 2009 US stocks surged yesterday, sending the Dow industrials above the key 9,000 mark for the first time since January, as strong corporate profits and rebounding home sales spurred optimism about the economy. The broad-based rally helped all 10 of the S&P 500’s benchmark sectors finish the day in positive territory. Strong profits from bellwethers such [...]
Post-crisis, the carry trade is a new beast to contend with July 22, 2009 IT WAS once the most popular trade in the foreign exchange market and helped fuel the boom in global asset markets until 2007. But with the advent of the sub-prime, and subsequently the full-blown, financial crisis, the carry trade was unwound as investors became risk-averse and piled into safe-havens such as the US dollar and [...]
Pharmaceuticals inject more life into the FTSE 100’s rise July 22, 2009 THE FTSE 100 added 0.3 per cent yesterday, extending its winning streak to eight sessions thanks to modest gains on Wall Street and solid second-quarter results from drugs giant GlaxoSmithKline. At the close, the index was 12.56 points higher at 4,493.73, up 8.2 per cent over the past eight sessions. Drug maker Shire was the [...]
Pick wisely and small cap firms could prove a real goldmine July 22, 2009 INVESTING in small companies has traditionally been seen as a risky business, reserved only for those with plenty of experience and deep pockets. But with global diversified blue-chip stocks running into trouble, it is no surprise that investors have started to see the lower echelons of the FTSE index as more attractive. Indeed, only last [...]
UK DEBT WILL UNDERMINE STERLING RISE July 22, 2009 JANE FOLEYRESEARCH DIRECTOR, FOREX.COM EARLIER this week one news service ran the headline that out of the S&P companies that have already announced their quarterly results, 71 per cent have produced positive surprises. These better earnings were consistent with a push into risky assets that not only supported the stock market but also knocked the [...]
UNCERTAINTY KEEPS LID ON ASSET PRICES July 22, 2009 GEORGE TCHETVERTAKOVHEAD OF MARKET RESEARCH, ALPARI UK FINANCIAL markets continue to remain in a state of flux as conflicting indicators and persistently unpredictable macro events sway sentiment. The frothy risk-rally in equities, commodities and FX that started in March hit a wall of doubt in mid-May leading to a sense of overextension amongst investors as [...]