Last Forex Week In Perspective

By: Mike Campbell
Over the course of last week, all of the world’s major stock markets lost ground. In Europe, the FTSE shed 1.17% of its value, closing at 4851.7; the Dax was down by 2.41%, closing at 5384.43; the CAC lost 2.56%, closing at 3598.76. In Japan, the Nikkei finished the trading week down by 3.29%, closing at 10187.1. Across the Atlantic, the Dow closed lower by 1.08%, finishing the trading session at 9441.27 whilst the Nasdaq exhibited the best performance of all the major indices, declining by just 0.49%, closing the week at 2018.78.

On the currency markets last week, the Dollar lost ground against the Yen (92.87, -1.0%) but strengthened against the Euro (1.426, -0.71%). It was essentially unchanged against Sterling (1.636, +0.02%) and the Chinese currency, at 6.83 Yuan to the Dollar. The Euro lost ground by 1.7% against the Yen at 132.45 Yen to 1€. It also slid slightly against the British Pound, losing the week, one € buying £ 0.872 (-0.74%).

On the commodities market, the price for Brent crude oil fell by 8.2% over the course of the week, closing at 66.82$ per barrel. If you hold gold reserves, last week was a good one for you. The precious metal closed at 991.6 $ per ounce equating to a 4.57% rise in the value of your holdings over the course of the last seven days.

Rumour has it that many UK fund managers believe that markets such as London’s FTSE will show good growth in Q4 so now could be a good time to invest. They expect to see that corporate activity will also ratchet up towards the end of the year which will feed through into the markets. Other experts, naturally, are sceptical that the recession has finished causing its heady mixture of uncertainty, floundering confidence and tumbling markets!