AFTER A CAUTIOUSLY POSITIVE RECEPTION FOR THE BUDGET, WHERE NOW FOR STERLING? June 22, 2010 MICHAEL HEWSON | CMC MARKETS If the Chancellor was looking to see if his credibility budget was a success, then judging by the market reaction so far it could well be he has succeeded. Euro-sterling has gained ground, pushing below the 83.2-3p support area and while the bigger 84p resistance level holds, further sterling gains [...]
THE TIPSTER June 22, 2010 IT WAS easy yesterday to focus only on what was happening to sterling but there was activity in plenty of other currency pairs too. The Australian dollar-New Zealand dollar has retraced ever since the Aussie dollar failed to maintain momentum above NZ$1.3000. The latest retracement to the NZ$1.2400 level equals the 38.2 per cent Fibonacci [...]
BUDGET HAS CALMED THE BOND MARKET June 22, 2010 GEORGE TCHETVERTAKOV HEAD OF MARKET RESEARCH, ALPARI YESTERDAY, chancellor George Osborne produced the most fiscally austere and severe budget in post-war UK history. Britain is embarking on its sharpest budget deficit reduction crusade since the 1940s with the aim of cutting the structural deficit by 8 per cent of GDP over the next five years. [...]
SLOW SHIFT IN YUAN WILL HELP RISK FX June 22, 2010 BORIS SCHLOSSBERG DIRECTOR OF CURRENCY RESEARCH, GFT LAST weekend Chinese monetary authorities announced that they were ending the yuan peg to the dollar that was adopted during the credit crisis to protect the country’s exporters. The People’s Bank of China (PBoC) noted: “In a continuation of the foreign exchange reforms launched in 2005, the yuan [...]
Chinese Yuan news boosts the FTSE 100 but BP and defence stocks decline June 21, 2010 BRITAIN’S top shares rose yesterday, boosted by China’s move to allow a flexible yuan which lifted investors’ risk appetite and bolstered the demand outlook for commodities, underpinning gains in miners and banks. The FTSE 100 ended 48.27 points higher, or 0.9 per cent, at 5,299.11, after it closed 0.1 per cent lower on Friday to [...]
Tech shares lead bearish sentiment on Wall Street June 21, 2010 STOCKS once again succumbed to late-day selling in light trading yesterday as hopes China’s newfound dedication to yuan flexibility turned to doubts about the speed and magnitude of Beijing’s intentions. The market’s overall bearish tone eroded the initial optimism around the benefits of the yuan move. Stocks pulled back as investors questioned the effectiveness of [...]
Chancellor to declare the winners and losers June 21, 2010 WITH tax rises and spending cuts expected in today’s Budget, many equity strategists are advising investors to steer clear of stocks heavily reliant on UK-based revenues. Instead, contracts for difference (CFD) traders should target equities with international and private sector exposure. The emergency Budget is likely to focus on tax rises instead of detailed spending [...]
GOLD’S SHINE TO KEEP ITS PRICE HIGH June 21, 2010 TWO weeks ago, Federal Reserve chairman Ben Bernanke was giving testimony to the House Budget Committee. In the Q&A session that followed, he was asked, among other things, about the price of gold. “I don’t fully understand movements in the gold price,” he replied, going on to say that he felt its rise was an [...]
China’s FX shift won’t spark a sustained rally June 21, 2010 IT WAS a decision that had been long awaited by the financial markets, analysts and policymakers alike. But the announcement by the Chinese central bank to gradually return the Chinese currency to a managed floating exchange rate was issued with little ceremony on Saturday evening Beijing-time. Despite its vagueness, the statement was leapt upon yesterday [...]
CFD ANALYST PICKS June 21, 2010 TECHNICAL STRATEGIST JOEL KRUGER My pick: Sell FTSE 100 at 5,400 Expertise: Technical analysis Average time frame of trades: 5-10 days The market has been very well-supported on dips below 5,000 with the latest bounce now likely to be opening additional gains back towards the 5,400 level over the coming sessions. However, any additional gains [...]
