By: Mike Campbell
Last week saw the year off to a good start with all of the major stock markets closing higher. In Europe, the FTSE made almost 2.5% in the first full week of trading of 2010, closing at 5534.2; the CAC made 2.8% closing at 4045.1; the Dax put on 1.4%, ending the week at 6037.6.
In the USA, the Dow ended the week up by 1.8%, finishing the trading session at 10618.2. The Nasdaq also made a good start to 2010, putting on 2.1% to close at 2317.2.
The Nikkei put on a further 2.4% over the course of the week to close at 10798.3.
On the currency markets last week, the Dollar enjoyed a good performance. It strengthened against the Yen to the tune of a further 1% closing at 93.34 to the Dollar. Against the Euro it strengthened by 0.65% during the week, closing at 1.4313. The Greenback was stronger against the British Pound gaining 1.9% closing at 1.5910.
The Euro rose slightly against the Yen last week closing at 133.60, up by 0.33%. It strengthened against Sterling, making 1.3%. The close saw one £ buying 1.1116€.
On the commodities market, the price for Brent crude oil was strongly higher closing at 81.4$ per barrel (for February delivery), the price of Brent crude rose by 3.4% over the course of the week’s trading. The value of gold has reversed the trend of recent weeks, appreciating by 3.3%, closing at 1132 $ per ounce. Gold is a traditional save haven in times of economic uncertainty, but its value tends to fall as the Dollar strengthens – so a different set of factors may have been brought into play this time.