HOW POUND IS BUFFETED BY POLITICS June 9, 2009 BORIS SCHLOSSBERGDIRECTOR OF CURRENCY RESEARCH, GFT THE currency market often reacts with more force to political news than it does to economic data. Currencies represent nations as well as economies so traders would do well to remember the golden rule of FX trading: in head to head combat, politics almost always trumps economics. Political instability [...]
Multinationals facing legal piracy challenge June 9, 2009 THE military dictatorship holds down oil-producing areas such as Ogoni by military decrees and the threat or actual use of physical violence so that Shell can wage its ecological war without hindrance.” So read Ken Saro-Wiwa’s closing statement at his trial before he and eight other leaders of the Ogoni people were hanged by the [...]
Texas lifts Nasdaq but Dow stays flat June 9, 2009 THE Nasdaq rose yesterday after an improved outlook from Texas Instruments lifted technology stocks, but gains on other indexes were limited as plans by big banks to repay government bailout funds raised concerns whether the move would help the economy recover. Shares of Texas Instruments jumped 6.4 per cent to $21.03 after it raised its [...]
MARKETS HIT BY BROWN CONJECTURE June 8, 2009 MARTIN SLANEYHEAD OF DERIVATIVES, GFT IS the recession over? The debate over whether the current stock market rally continues to rage. The good news on the economic front just keeps on coming and investors are lapping it up. The FTSE 100 is up nearly 30 per cent from its March lows on the perceived belief [...]
FTSE 100 remains steady despite the political rout and a bit of profit taking June 8, 2009 THE FTSE 100 shed 1 per cent, or 33.34 points, to close at 4,405.22 yesterday, weighed down by weak energy and mining stocks, while banks fell as recent bullish sentiment soured. “Caution is creeping back into financial markets after what was largely a positive week for equities,” said David Evans, market analyst at BetOnMarkets.com. “There [...]
EUROPEAN REPORT June 8, 2009 EUROPEAN shares closed lower yesterday as banks gave back some of their recent gains, though a late rally in commodities prices helped to limit the losses of mining and energy shares. The pan-European FTSEurofirst 300 index fell 0.8 per cent to 865.11 points, rising off the day’s low of 857.39. The index had risen for [...]
CREDIT REPORT June 8, 2009 SOVEREIGN debt markets dominated headlines yesterday after recession-torn Ireland saw its issuance downgraded by Standard & Poor’s (S&P) for the second time in under three months. The ratings agency cut Irish bonds to “AA” from “AA+”, after removing its top “AAA” rating in March, on fears the Eurozone nation may be unable to meet the [...]
Global recovery sparks interest in commodities June 8, 2009 AS THE prospects of a global recovery have returned, so have rising commodity prices. And while it is oil that is dominating the headlines, the surge is happening across the board. According to the S&P/Goldman Sachs Commodity Index, raw material prices rose 20 per cent in May and the Baltic Dry Index – a measure [...]
Emerging market strength means luxury is down but far from out June 8, 2009 FOR a while it seemed like the luxury goods retailers would escape the global recession relatively unscathed. The rich would still remain relatively rich and any loss of custom in developed countries would quickly be replaced by growing demand in emerging markets like China. That hope has vanished in the past two weeks as the [...]
Banks shrug off McDonald’s and Apple worries June 8, 2009 US stocks rebounded late yesterday to end flat, shrugging off lighter-than-expected sales from McDonald’s and lowered iPhone prices from Apple. The three major US stock indexes had fallen more than 1 per cent before rallying in the last hour of trading, led by bank shares. Analysts pointed to the S&P 500’s recent piercing of its [...]