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 [...]
Wall St tumbles as debt crisis in Europe weighs September 26, 2012 THE S&P 500 fell for a fifth straight trading day yesterday as protests in Spain and Greece over Eurozone austerity measures raised fresh concerns over Europe’s ability to get its debt crisis under control. Investors sold risk-sensitive sectors such as energy and tech, while they poured money into more defensive areas like utilities and consumer [...]
Europe can take advantage of the USA’s home crowd September 26, 2012 THE Ryder Cup begins in Chicago tomorrow and I have to say that though I still fancy Europe to win – and I have done for some time – this is the time when all of the advantages given to the home team, this year the USA, means that there’s everything to play for. These are the [...]
Strong US data helps lift the FTSE as miners and banks take a dive September 25, 2012 BRITAIN’S top share index rose yesterday, with energy stocks in the lead, improving on small gains earlier in the day after US data allayed some concerns over a stalling of the global economic recovery. At the close, the FTSE 100 index was up 20.87 points or 0.4 per cent at 5,859.71 points, near the session [...]
Earnings woes push Wall St into the red September 25, 2012 THE S&P 500 suffered its worst day since June yesterday, pulled lower by Caterpillar after it cut its profit outlook, the latest high-profile company to warn about profit growth. Technology shares came under pressure after a second day of weakness for Apple, the world’s most valuable public company. Shares fell 2.5 per cent to $673.54 [...]
Silver surfers prepare to leave gold bugs behind as they ride the wave September 25, 2012 FOLLOWING recent policy announcements from the Federal Reserve, European Central Bank (ECB) and the Bank of Japan, making an investment case for metals may not be original. But, with rallies off lows in June, some may prefer silver over gold. It can be argued that silver has more scope to regain its record high, as [...]
Monty wants McIlroy kept well away from the Tiger September 25, 2012 FORMER Ryder Cup captain Colin Montgomerie believes it is important Europe’s Rory McIlroy avoids America’s Tiger Woods in the Ryder Cup singles on Sunday. Montgomerie was the captain when Europe won at Celtic Manor two years ago and despite understandable public interest in seeing the tournament’s two greatest talents directly compete, believes it to be [...]
US recovery looks in doubt as Fed activity index collapses September 24, 2012 THE US recovery faltered in August, according to the Chicago Fed’s national activity index released yesterday. The headline indicator fell from minus 0.12 in July to minus 0.87 in August – below the minus 0.7 level that is consistent with weak recovery. Figures above zero indicate more robust growth. The three-month moving average also slipped, [...]
FTSE dips on poor European data and weakness in price of copper September 24, 2012 BRITAIN’S top share index fell yesterday, led by miners, as dull European data kept the focus on a gloomy economic outlook, tempering the boost given to markets by recent central bank stimulus moves in Europe and the United States. Germany’s Ifo index of business sentiment fell for a fifth month running, bucking expectations for a [...]
Bank intervention makes risk management critical September 24, 2012 FX360 CENTRAL banks have never been averse to interventionist strategies. But the approach has certainly fallen from favour – and in spectacular fashion – on a couple of occasions in recent memory. Just over twenty years ago, the UK was desperate to stay within the European Exchange Rate Mechanism (ERM), a system that required each [...]