By: Dr. Mike Campbell

All of the world’s major indices closed sharply lower last week due to the sovereign debt crisis in Europe and the USA. In Europe over the course of the week, the FTSE shed 9.8% and closed at 5247; the Dax fell by 13% to close at 6236.16%; the CAC weakened by 10.7% to end the session at 3278.56.

The Dow ended the week down by 5.8% finishing the trading session at 1144.6. The Nasdaq ended the week off by 8.1%, to close at 2532.41.

The Nikkei weakened over the course of the week, losing 5.4% to end the trading session at 9299.88.

Currency Markets Review

On the currency markets last week, the Dollar had the best of the trading following an intervention by the Bank of Japan to weaken the Yen. The Dollar was flat against Sterling, making 0.07% and closed at 1.62879 to the Pound. The Greenback made ground against the Euro last week, gaining 0.74% to close at 1.4155. The Dollar made ground against the Japanese currency, closing at 78.5941 to the Yen, a gain of 1.3% on the week.

The Euro closed up against the Yen ending at 111.25, making 0.6% over the course of the week. The Euro also lost ground against Sterling over the course of the week sliding by 0.67%; the close saw one £ buying 1.15068.

Commodities Market Review

On the commodities market, the price for Brent crude ended sharply lower, closing at $116.7 per barrel (for September delivery); a fall of 6.3% over the course of the week’s trading on concerns for the global recovery. The value of gold rose again last week, closing at $1658.8 per ounce, representing a gain of 1.85% over last week’s value.