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Families Breath Sigh of Relief, US Sheds Less Jobs Ahead of Christmas

December 7th, 2009

Market Highlights

  • Dubai World property scare eases as FTSE recovers
  • ECB prepares to withdraw from QE activities
  • US employers shed less jobs than any period since 2007

Dubai World Property Scare Turns the Heat Up

As turkey’s make their way to our dinner tables for Christmas, Sterling faced volatile trading conditions between 1.6338 and 1.6722 throughout last week. Investors continued to battle between a state of risk-aversion and risk-appetite ahead of the news that Dubai World, property arm may default on its US$60bln loan commitment. Creditors may seek to take control of part of the Dubai Waterfront property, the size of Manhattan island. Read Full Article »

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Intervention Averts Another Global Crisis

November 30th, 2009

Market Highlights

  • USD seen as the safe haven again
  • Is there still hope for Sterling?
  • German sentiment figures support the euro

USD seen as the safe haven again

Last week saw several good pieces of data for the US with Housing, Consumer Confidence and Unemployment all coming in better than expected. This added risk appetite back into the market and saw sterling rise to the dizzy heights of over $1.67. However, world markets were suddenly rocked on Friday morning from the news that Dubai has announced it has major debt problems to the value of upto $80bln. The debt was brought Read Full Article »

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Riskier Assets Fuel Dollar Sell-Off As Markets Turn To Gold

November 16th, 2009

Market Highlights

  • Inflation concerns hamper thoughts of recovery
  • ECB out of recession
  • Gold takes centre stage as dollar tumbles

Inflation concerns hamper thoughts of recovery

The pound had another dramatic week as the ever anticipated inflation report gave it a real slap in the face. The Bank of England members tried to give some hope to an already battered economy and perhaps raise a smile on the ever concerned consumer. Alas, it didn’t do anything but confirm this country as almost third world. Last week started off with a possible downgrading from Fitch and as if we didn’t know it we are most at risk for a cull from the major economies. Perhaps it’s the 800bln debt were carrying that brought them to this conclusion. Read Full Article »

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Positive G20 sees risk appetite on the up

November 9th, 2009

Market Highlights

  • Is the end in sight for quantitative easing?
  • Carry trade concerns keep dollar suppressed
  • All eyes on German fundamentals for Euro growth

Is the end in sight for quantitative easing?

As the markets rested yesterday, our countries leader continued in his seemly favourite past time of the moment; the slow demise of his reputation. Prime Minister Brown retreated from his proposal for a financial transaction tax, or ‘Tobin Tax’ after strong criticism from the U.S., ECB, Canada, Read Full Article »

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British Pound Assured Volatility as BoE is Forced into a Policy Decision

November 2nd, 2009

Market Highlights

  • Will the UK increase QE and decrease sterling demand
  • Will risk taking continue to prosper following bullish US GDP
  • Euro pullback may turn into reversal should dollar recover

Will the UK increase QE and decrease sterling demand

Last week saw the buyout of Standard Life by Barclays for 266m which started the week off with sterling being bought, this mildly countered the negative GDP Q3 release within the UK the week before. The markets have seen sterling continue to be on the back foot against most majors. With UK data thin on the ground last week, we saw heavy swings via fundamental releases from the Eurozone and America. The positive US GDP figure was the main driver on Thursday and caused sterling/dollar to trade up to 1.6570 as risk came Read Full Article »

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