By: Dr. Mike Campbell
The news that leading central banks would act in concert to improve financial sector access to Dollars and boost liquidity, buoyed the markets last week. News that France and Germany were proposing a tighter fiscal union within the Eurozone and that the ECB was prepared to act more aggressively to support the Euro also helped to bolster confidence.
In Europe over the course of the week, the FTSE climbed by 7.5% and closed at 5552.3; the Dax ended the week at 6080.7, making 10.7% on the week; the CAC rose by 10.8% to end the session at 3165.
The Dow ended the week down higher to the tune of 7% at 12019.4. The Nasdaq composite index ended the week at 2626.9, climbing 7.6% over the week.
The Nikkei closed up over the course of the week, making 5.9% to end the trading session at 8643.8.
Currency Markets Review
On the currency markets last week, the Euro saw the best of trading. The Dollar was weaker against Sterling, falling 1.6% and closing at 1.57068 to the Pound. The Greenback weakened against the Euro last week, slipping by 2.1% to close at 1.3511. The Dollar made ground against the Japanese currency closing at 77.8995 to the Yen, a gain of 0.45% on the week.
The Euro closed up against the Yen ending at 105.25 rising 2.6% over the course of the week. The Euro was also stronger against Sterling over the course of the week by 0.51%; the close saw one £ buying 1.16252.
Commodities Market Review
On the commodities market, the price for Brent crude ended higher, closing at $109.9 per barrel (for January delivery); a gain of 3.3% over the course of the week’s trading. The value of gold climbed last week, closing at $1747 per ounce, representing a gain of 3.5% over last week’s value.