By: Mike Cambell
Economic parameters vary with great speed over the course of a trading day. For this reason, it is useful to look at data over a slightly longer term to gain an insight into any trends that might be emerging which can be exploited for your investment strategy. As this is the last Monday in September, the time is right for such a perspective.
All of the world’s major stock markets lost ground over the course of last week, reversing the trend of the previous week. In Europe, the FTSE dropped 1.75% of its value, closing at 5082.2; the CAC lost 2.3%, closing at 3739.14; the Dax closed lower by 2.15% at 5581.41. Japan’s Nikkei ended the trading week lower, closing at 10265.98; a drop of 1%. In the States, the Dow closed down by 1.6%, finishing the trading session at 9665.2. The Nasdaq fared slightly worse over the week; closing down by almost 2 % at 2090.92.
Over the course of the month so far, the Nasdaq has gained 3.8%; the Dow Jones has put on 6.1%; the FTSE rose by almost 5.5%; the Dax gained 4.8%; the CAC is up by 4.3%; but the Nikkei has lost 2.5%.
On the currency markets last week, the Dollar lost little ground against the Yen (90.38, -1%). Against the Euro it continued to edge lower, closing at 1.467, -0.24% over the previous week’s rate. The American currency, however, made some ground against the British Pound (1.597, +2.2%) but unchanged against and the Chinese currency, at 6.83 Yuan to the Dollar which follows the Dollar.
The Euro weakened against the Yen last week to close at 132.59 Yen to 1€ (-1.18%). It also gained significantly against the British Pound again last week, one £ buying 1.0884€ (+2.0%).
Over the course of the month so far, the Dollar has lost 2.9% against the Yen; 2.5% against the Euro; but has gained 1.7% against Sterling. The Yen has gained 0.5% of its value against the Euro and Sterling has fallen by 4% against the Euro.
On the commodities market, the price for Brent crude oil was significantly lower against last week’s mark. Brent crude fell by 8.7% over the course of the week, closing at $65.11 per barrel (for November delivery). This has been attributed to doubts over the strength of the global economy which would mean demand is weaker. The value of gold closed down below the $1000 mark at 994.8$ per ounce equating to a drop of 1.7% rise over the previous week’s closing price.
FOREX: September In Perspective
DailyForex.com