The dollar is a tough act to follow June 1, 2010 WITH speculation growing that the dollar could be forming a short-term top, Deutsche Bank has released research suggesting “an increasing likelihood of dollar correction”. The bank suggests that the dollar’s rally to over two standard deviations above its 200-day moving average is a strong indicator that a dip could be imminent. As the bank reports, [...]
THE YEN IS NO LONGER SUCH A SAFE HAVEN June 1, 2010 DIRECTOR OF CURRENCY RESEARCH, GFT IF POLITICIANS in the West want to cheer themselves up all they have to do is look at the approval ratings of Yukio Hatayama. Less than 20 per cent of the electorate feels that Japan’s prime minister is doing a good job. Even Richard Nixon still had the trust and [...]
THE TIPSTER June 1, 2010 AS PREDICTED in this column yesterday, a collapse in the Prudential-AIG deal was always going to see cable pop upwards as a result of the massive hedge that was in place needing to be unwound. Cue a 260 pip rally yesterday following news that the deal is almost certainly off by the end of the [...]
Fears over BP’s survival drags FTSE 100 lower as the latest bid to plug leak fails June 1, 2010 TOP shares fell yesterday led by a plunge in BP shares after the company’s failure to stem an oil spill in the Gulf of Mexico, but they finished off lows thanks to upbeat US construction data. The FTSE 100 closed down 25.13 points or 0.5 per cent at 5,163.30, its lowest close since 26 May, [...]
Slide in energy shares hits US as jittery investors sell June 1, 2010 US stocks fell yesterday as energy shares slid after the latest failed attempt to halt the oil spill in the Gulf of Mexico and the US government announced a criminal probe into the disaster. Investors punished shares of companies directly involved with the spill and losses accelerated into the close following the news of the [...]
Shopping around is the future of law June 1, 2010 COMMENTATORS talk excitedly about “Tesco Law” and the ongoing liberalisation of legal services as though it were a latter day gold rush led by big name supermarkets and banks. But what is it that consumers want? New research suggests that there is little enthusiasm on the part of the public to associate legal services with [...]
Europe shares in biggest monthly loss since Feb ‘09 May 31, 2010 EUROPEAN equities closed higher yesterday, led by shares of German exporters, but a downgrade of Spain’s credit rating weighed on Madrid-listed stocks, with Banco Santander and BBVA losing ground. The FTSEurofirst 300 index of top European shares unofficially closed the holiday-thin session up 0.3 per cent, at 1,000.55 points, capping off its worst month since [...]
An ultra-bullish FTSE outlook is too optimistic in volatile times May 31, 2010 AFTER a week in which the FTSE 100 dropped from its mid-April peak of 5,834 back down through the 5,000 mark, Morgan Stanley has surprised the financial world by revising its 2010 FTSE target up from 5,000 to 5,800. The bank suggests that recent market turbulence is not the start of the dreaded double dip [...]
THE TIPSTER May 31, 2010 STERLING-US dollar has been well-supported of late on fears that Prudential’s planned purchase of AIA could collapse. A large currency hedge shorting cable was put in place some months ago when the deal was first agreed and if it falls over, the hedge will come off, sending sterling-US dollar higher. While highly speculative, traders should [...]
SPREAD BET GURU May 31, 2010 MARKET STRATEGIST josh@cityindex.com Q. Dear Josh, what does a hike in capital gains tax mean for spread betters? A. We don’t yet know what will be announced in the emergency budget on 22 June, but the good news is that even if there is a hike, this should make no difference to spread betters. Suggestions [...]
