CITY INDEX November 7, 2010 Q.Dear Sandy, will the FTSE 100 continue to climb in November? A.Traders have been digesting a raft of information over the last few weeks. With the $600bn injection from the Fed and President Obama’s mid-term elections out of the way, the market has not reacted negatively, unlike what many traders had expected. When markets behave [...]
WALL STREET WEEK AHEAD November 7, 2010 Wall Street navigated through three major landmines last week – the elections, the U.S. Federal Reserve meeting and jobs report – with barely a scratch. Now what? With earnings season winding down and a light economic calendar this week, the market will be left to its own devices to sort out its direction. A rise [...]
Dollar may devalue by a third, warns currency fund manager November 7, 2010 ONE OF Europe’s top currency fund managers has warned that the US dollar could devalue by up to 30 per cent in the next year as concerns over the state of the country’s ailing economy continue to grip the markets. Bob Arends, who runs the Henderson Horizon Global Currency Fund, predicts the dollar could fall [...]
Rest of the world itches for a fight with US November 7, 2010 Get ready for a “Shellacking.” President Barack Obama’s one word description of the drubbing the Democrats suffered in last week’s mid-terms equally well describes what the rest of the world fears it will suffer as a result of QE2. In recent days, commentators have argued that gridlock in Congress will be good for business. It [...]
Shares are back to 2008 level November 5, 2010 GLOBAL stock markets surged yesterday to their highest level since the collapse of Lehman Brothers over two years ago, in reaction to the Federal Reserve’s decision to try and hasten the pace of the recovery by pumping $600bn (£372.69bn) of fresh funds into the US economy. The FTSE 100 index of leading shares closed up 113.82 [...]
Stock markets are wrong about QE2 November 5, 2010 YESTERDAY’S stock market rebound is the proof that investors don’t always get it right – or at least, that they still love to get drunk on the prospect of cheap money. Stock markets in the US and UK jumped, taking equities back to the time when Lehman Brothers was just another big investment bank. One [...]
GDP surprise keeps MPC on hold for now November 4, 2010 THE Bank of England yesterday voted to hold fire on further quantitative easing (QE) and kept interest rates on hold at 0.5 per cent, in a move that was widely expected following the strong GDP data released last week. Prior to the publication of third-quarter GDP, which showed the economy growing at twice the rate [...]
Broughton lying low at chelsea matches November 4, 2010 MARTIN Broughton, the Liverpool FC chairman who brokered the deal to sell the troubled club to the owners of the Boston Red Sox last month, was back where he feels most comfortable this week. Broughton was spotted walking out of Stamford Bridge after watching his beloved Chelsea beat Spartak Moscow. But Broughton, who will ease [...]
FTSE rockets to pre-crisis level as investors bet on US recovery November 4, 2010 BRITAIN’S top shares closed at their highest in nearly 29 months yesterday as investors responded bullishly to the US Federal Reserve’s decision to pump more cheap money into the economy to boost flagging growth. Financial stocks, led by Man Group and mining and energy shares such as BHP Billiton and BP, surged higher as riskier [...]
Dow rockets after Fed stimulus boost November 4, 2010 US stocks extended a rally that started in September to close at two-year highs yesterday, a day after the Federal Reserve unveiled a plan to boost the economy. A bullish read on consumers also boosted shares as many retailers posted stronger-than-expected sales for October. The S&P retail index gained 1.7 per cent and apparel maker [...]