By: Mike Campbell
Last week was a turbulent one for the major stock markets on the back of continuing uncertainty on the Eurozone crisis despite a major initiative, but all markets were up on the previous week’s level. In Europe over the course of last week the FTSE regained 2.7%, closing at 5262.9; the Dax strengthened by 6 % ending the week at 6056.7; the CAC made 5% to end the session at 3560.4. The markets are concerned about sovereign debt levels and the potential for civil disturbances when these are tackled.
The Dow ended the week up by 2.3%, finishing the trading session at 10620.2. The Nasdaq ended the week regaining 3.6%, closing at 2346.9.
The Nikkei recovered 0.9% over the course of the week ending trading at 10463.
On the currency markets last week, the Dollar was higher against other major currencies. Against the Euro, the US currency rose by a further 2% over the course of the week, closing at 1.2492 to the Euro. The Greenback was stronger against the British Pound, rising by 0.7%, to close at 1.4575 to the Pound. The Dollar was essentially unchanged against the Japanese currency at 92.45 to the Yen, a gain of 0.05% on the week.
The Euro had yet another terrible week on the back of continuing uncertainty about the sovereign debt situation and fears of it causing civil unrest as unpopular austerity measures are adopted. It fell by 2% against the Yen closing at 115.6. The Euro also fell against Sterling over the week by 1.3%. The close saw one £ buying 1.1667€. The UK now has a coalition Conservative/Liberal Democrat government.
On the commodities market, the price for Brent crude declined, closing at $77.18 per barrel (for June delivery); a fall of 1.4% over the course of the week’s trading. The value of gold strengthened; closing at 1226 $ per ounce, representing a further gain of 2.1%.