INVESTORS FLOCKING TO SAFE HAVENS February 3, 2010 SENTIMENT in the foreign exchange market has changed dramatically over the past week as investors increasingly question whether the strong performance of risk assets in 2009 can be sustained in 2010. Monetary policy tightening in both China and India have made investors much more wary. As Greece’s debt problems have come to the fore in [...]
Whether QE stays or goes, sterling is weak February 2, 2010 THE big event this week for sterling is tomorrow’s decision from the Bank of England’s Monetary Policy Committee (MPC). Up until last week, it had been widely expected that the Bank’s £200bn quantitative easing programme would be paused in February, but dismal fourth quarter GDP growth data raised the possibility that the MPC might extend [...]
JOBS ARE KEY TO AMERICAN 2010 GROWTH February 2, 2010 CHINA was the biggest market surprise in 2009 as the country’s GDP growth almost single handedly rescued the world from the worst economic recession since the war. The continuation of the recovery trade will be dependent on whether G20 economies can take the baton from China as its economic growth slows to a more natural [...]
This year, look out for the rise of the rupee February 2, 2010 WHO would want to be an emerging market central banker at the moment? Having stormed ahead of their Western rivals during the financial crisis, economies in Asia and Latin America are now facing the prospect of rising prices. The authorities face an unenviable task – they need to strangle inflation without derailing growth. In these [...]
The Tipster February 2, 2010 CENTRAL BANK news is dominating the currency markets this week and foreign exchange traders should be digesting these decisions as they are announced. On Monday night, the Reserve Bank of Australia (RBA) shocked the markets by keeping interest rates on hold at 3.75 per cent. The expectation had been for a 25 basis point hike [...]
Investors with a strong stomach could find safe haven in the franc February 2, 2010 AMID all of the turmoil gripping the European Union in the wake of Greece, Portugal, Spain and Ireland’s debt problems, Switzerland – which is not a member state – has remained fairly trouble free. The contrast between Europe’s woes and the relative calm of the economic outlook in Switzerland has been played out in the [...]
BP’s fall takes fuel out of oil stocks but FTSE rises higher February 2, 2010 Britain’s top shares closed higher for the third straight session yesterday as miners and banks extended the previous day’s gains but BP dragged energy stocks lower with fourth-quarter results that missed expectations. The FTSE 100 was up 35.90 points, or 0.7 per cent at 5,283.31, after closing 1.1 per cent higher on Monday. Miners added [...]
DR Horton cements construction stocks February 2, 2010 US stocks rallied for a second day yesterday as better-than-expected earnings and encouraging data calmed investors after the market’s recent sell-off. Rising sales of previously owned US homes and robust earnings from bellwethers representing consumer and industrial businesses, including Whirlpool and Cummins, pointed to a steady rebound in demand. “The housing data, followed by the [...]
In these markets, you should defend yourself February 1, 2010 DESPITE strong US and Chinese growth data and a solid – if not stellar – US earnings season, it has not been a good fortnight for global equities Since the start of the year, the S&P 500 has lost 4.6 per cent, the FTSE 100 is down 5.2 per cent and the MSCI World index [...]
