By: Dr. Mike Campbell

The putative accord between 26 EU states for tighter fiscal control and financial harmonisation came at the end of the trading week and has not yet been fully absorbed by the markets. Nor have the ramifications of the UK’s decision not to adopt the new measures.

In Europe over the course of the week, the FTSE slipped by 0.42% and closed at 5529.2; the Dax ended the week at 5986.7, shedding 1.6% over the week; the CAC rose by 0.23% to end the session at 3172.4.

The Dow ended the week higher to the tune of 1.4% at 12184.3. The Nasdaq composite index ended the week at 2646.9, climbing 0.76% over the week.

The Nikkei closed down over the course of the week, dropping 1.2% to end the trading session at 8536.5.

Currency Markets Review

On the currency markets last week, the Yen saw the best of trading. The Dollar was marginally stronger against Sterling, climbing 0.12% and closing at 1.56878 to the Pound. The Greenback strengthened against the Euro last week, making by 0.94% to close at 1.3384. The Dollar lost ground against the Japanese currency closing at 77.6674 to the Yen, a fall of 0.3% on the week.

The Euro closed down against the Yen ending at 103.95 falling 1.2% over the course of the week. The Euro was also weaker against Sterling over the course of the week by 0.83%; the close saw one £ buying 1.17213.

Commodities Market Review

On the commodities market, the price for Brent crude ended lower, closing at $108.6 per barrel (for January delivery); a loss of 1.2% over the course of the week’s trading. The value of gold fell last week, closing at $1709 per ounce, representing a loss of 2.2% over last week’s value.