Commodities lead Wall Street down May 11, 2011 US stocks almost erased a three-day rally yesterday as energy and commodity shares sank, feeding worries over the market’s ability to stay on an upward path. The second major breakdown in commodities in a week fuelled selling in other risky assets, including stocks. A stronger dollar and data showing a rise in US fuel supplies [...]
Sterling looks weak but not as frail as the euro and dollar May 10, 2011 STERLING has had a tough year. An underwhelming recovery and loose monetary policy from the Monetary Policy Committee (MPC) have had their impact, neither of which looks to be imminently reversed. But bad as things are, the monetary authorities in the US appear to be wedded to keeping interest rates lower for longer than the [...]
Euro versus dollar: a scrappy fight May 10, 2011 OVER the last fortnight, the euro-dollar pairing has turned into a bit of an ugly dog contest, with both sides competing to see who carries the fewest fleas. However, the euro came out second best in this challenge last week, hit with attacks from all sides. The tipping point for the pairing came when the [...]
Rebels fed up with Cipriani May 9, 2011 RUGBY UNION: England outcast Danny Cipriani’s Melbourne Rebels future is on the line with the club admitting they are fed up with his ill discipline. “Players and management have lost confidence in Danny,” said chief executive Ross Oakley.
A GLEAM OF A SILVER LINING IN THE STORM May 9, 2011 LAST week was truly horrible for leveraged longs in commodity markets. Silver fared particularly badly with prices falling close to 30 per cent in five days. It was a vicious sell-off which will have left many traders and investors bruised, battered and wary of future volatility. Yet there is plenty of anecdotal evidence from dealers [...]
Milton Friedman was wrong: There is such a thing as a free breakfast May 9, 2011 IN ASSOCIATION with GFT, next Thursday City A.M. is hosting a free workshop on contracts for difference (CFD) and currency trading. The speakers will be the regular City A.M. columnists David Morrison, GFT’s market strategist, and Boris Schlossberg, GFT’s director of currency research. It is taking place on Thursday 19 May at The Grange St [...]
Salmond’s momentum sets course for independence May 9, 2011 SO Scotland is on the road to independence. There are many who say it will never happen, but they are the same people who said the SNP would never be the largest party in the Scottish Parliament, let alone win an outright majority. They are the people who said that devolution would kill off all [...]
European Central Bank set for a bumpy ride May 8, 2011 JEAN-CLAUDE Trichet says the European Central Bank (ECB) over which he presides wants to remain flexible. Let us hope his flock of hawks and doves means this because the next few months are going to be a bumpy. What is becoming increasingly clear is that the global manufacturing rebound is slowing down. This is showing [...]
Four reasons why the Eurozone may survive – and two reasons it won’t May 8, 2011 1 COMMITTED TO AUSTERITY Despite (well denied) rumours at the end of last week about a Greek pullout from the euro, Greece, Spain and Ireland are less opposed to reform and austerity than many in the media would have us believe. In Ireland, the electorate remember the prosperity of the Celtic Tiger years and want [...]
Protests, earthquakes, wars and bailouts. But no love for the dollar May 3, 2011 THROUGHOUT 2011, we have had sustained periods of uncertainty in the money markets. In the past, uncertainty and turmoil have given rise to rallies for the greenback as a result of investor flight into the safety and liquidity of this safe haven currency. Continued turmoil in the Middle East, concerns over the ongoing European sovereign [...]