By: Dr. Mike Campbell

With the exception of the FTSE, all the world’s markets ended the week lower, despite a late rally, on continuing nervousness and concerns about sovereign debt. In Europe over the course of the week, the FTSE made 1.4% and closed at 5320; the Dax fell by 3.8% to close at 5997.7%; the CAC weakened by 2% to end the session at 3213.9.

The Dow ended the week down by 1.5% finishing the trading session at 11269. The Nasdaq ended the week off by 0.96%, to close at 2508.

The Nikkei weakened further over the course of the week, losing 3.6% to end the trading session at 8963.7.

The recovery of world stocks that started at the end of last week has continued on Monday morning. Next week’s piece will allow us to see if this is a bounce or a more lasting return of confidence.

Currency Markets Review

On the currency markets last week, the Yen had the best of the trading; the influence of the intervention by the Bank of Japan to weaken the Yen was short-lived. The Dollar was stronger against Sterling, making 0.17% and closing at 1.62606 to the Pound. The Greenback lost ground against the Euro last week, falling 0.67% to close at 1.425. The Dollar lost ground against the Japanese currency, closing at 76.5404 to the Yen, a fall of 2.6% on the week, taking the currency back below the value it was at when the Bank of Japan intervened to weaken the Yen.

The Euro closed down against the Yen ending at 109.07, falling 2% over the course of the week. The Euro made ground against Sterling over the course of the week rising by 0.83%; the close saw one £ buying 1.1411.

Commodities Market Review

On the commodities market, the price for Brent crude ended lower, closing at $108 per barrel (for September delivery); a fall of 1.3% over the course of the week’s trading on continuing concerns for the global recovery. The value of gold rose again last week, closing at $1736 per ounce, representing a gain of 4.7% over last week’s value.