FOREX: Last Week In Perspective- October 12th

By: Mike Campbell
Last week was a much better one for the world’s major stock markets with all indices recovering ground over the course of the week. In Europe, the FTSE was up by 3.47%, closing above the psychologically important 5000 point barrier at 5161.9; the CAC put on a healthy 4.1%, closing at 3799.61; the Dax closed up by an impressive 4.46% at 5711.88.

The Nikkei restored 2.92% of its value over the course of the week to close at 10016.39; whilst this was clearly a move in the right direction from an investor’s point of view, again, the percentage gains were significantly lower than those seen in other markets.

In the USA, the Dow put on 3.96% of its value, finishing the trading session at 9864.94. The Nasdaq enjoyed an even better bounce back over the week; closing up by 4.45% at 2139.98.

On the currency markets last week, the Dollar had another miserable week, losing ground against all the other major currencies. Against the Euro it continued to weaken, closing lower with 1€ buying $1.475, a loss of 1.47% over the week. The Greenback was weaker against the British Pound to the tune of 0.84%, closing with 1£ buying $1.598. The US Dollar slipped further against the Japanese Yen, the Greenback losing a further 0.57% to close at 88.895 to the Dollar.

The Euro strengthened against the Yen last week to close at 131.12, recovering by 0.9% of its value against the Japanese currency. The Euro continued to strengthen against Sterling, appreciating by 0.61% over the course of the week. The close saw one £ buying 1.0836€.

On the commodities market, the price for Brent crude oil was again significantly higher than the previous week’s mark. Brent crude rose by 2.84% over the course of the week, closing at 70$ per barrel (for November delivery). This may reflect the declining value of the US dollar being factored into the price. The value of gold continued to appreciate last week making fresh record highs; it closed up at 1055 $ per ounce; equating to 5.49% rise over the previous week’s closing price.