FTSE swings lower as rumours of Spanish bailout spook investors October 2, 2012 BRITAIN’S top share index continued its choppy trend and was pulled marginally lower yesterday, as weakness in banks and miners overpowered results-related gains for companies such as Babcock and Tesco. The FTSE 100 closed down 11.00 points, or 0.2 per cent, at 5,809.45. The index has swung in a 100-point range over the last five [...]
Europe weighs on S&P as car firms improve October 2, 2012 WALL Street ended little changed in a volatile session on Tuesday as uncertainty over when Spain might apply for a bailout shackled a market struggling to build on gains that took the S&P 500 to its highest in nearly five years. The market was also hamstrung by concerns about the upcoming reporting period that kicks [...]
Aussie outlook spinning around October 2, 2012 THE Reserve Bank of Australia (RBA) yesterday called the end of the country’s commodities boom, citing the effects of the Chinese slowdown on the mining sector. At the same time, it announced that the official cash rate will be cut by a quarter of a point – down to 3.25 per cent. This latest drop [...]
Stimulus could lift FTSE index October 2, 2012 THE FTSE 100 is the only G5-nation equity index (ex-Japan) yet to hit a new high for the year. The index is up a mere 5 per cent this year, compared to 24 per cent for the Dax 30 and 15 per cent for the S&P 500. But we deem the FTSE’s underperformance to be [...]
Bears prepare to pull British bulldog down October 2, 2012 THE FUNDAMENTAL CASE I F CURRENCIES reflect the health of their economies, there are many reasons to be bearish on sterling. Although recent data has been mixed, sterling-dollar (or cable) looks overvalued. The days of the UK’s position as an apparent safe haven look to be numbered. MYTH OF SAFETY The idea of the UK [...]
The chartists’ case for going short sterling October 2, 2012 THE TECHNICAL CASE STERLING-DOLLAR, or cable, has been a rewarding trade over the last few months, rallying by over 1,000 pips (one pip is equivalent to one hundredth of 1 per cent) since the lows in summer. This has been on the back of weakness and uncertainty in both the US and Europe. However, the [...]
FTSE rebounds after Xstrata board gives thumbs up to Glencore bid October 1, 2012 BRITAIN’S FTSE 100 share index rebounded from three-week lows yesterday, bolstered by strong US manufacturing data and prospects of more takeover activity after Xstrata’s board gave long-awaited backing to a bid from Glencore. Adding to the relatively upbeat investor mood on the first day of the new quarter, Spanish bank stress tests late on Friday [...]
Manufacturing data gives Wall Street a boost October 1, 2012 WALL Street started a new quarter with a modest rally yesterday, lifted by a surprising expansion in US manufacturing in September. After rising more than one per cent by midday, the major US stock indexes came off their highs, with the Nasdaq the hardest-hit. Market participants said Wall Street has shown signs of fatigue as [...]
Brave traders may fancy a contrarian position on Spain October 1, 2012 THE Ibex 35 has become a whipping boy for traders to take out their Eurozone angst. Since the onset of the financial crisis, over 50 per cent has been wiped off its value. In 2012 alone, the Spanish index has shed 10 per cent. Against a backdrop of a meagre economy, going long on Ibex [...]
Euro-Dollar drama may continue into next year October 1, 2012 FX360 THE final quarter of 2012 is now well underway and, by all accounts, the single currency has been given something of a lift. What is more, this positivity has arrived against the backdrop of mounting belief that a Spanish bailout is now nothing more than a formality. It could be initiated as soon as [...]
