By: Dr. Mike Campbell
All of the world’s major stock exchanges closed higher last week after the Federal Reserve decision for a further round of quantitative easing. In Europe over the course of the week, the FTSE put on 3.5%, closing at 5875.4; the Dax made 2.3%, ending the week at 6754.2; the CAC gained 2.2% to end the session at 3916.7.
The Dow ended the week stronger by 2.9%, finishing the trading session at 11444.1 The Nasdaq ended the week higher by 2.9%; closing at 2579.
The Nikkei closed up by 4.6% over the course of the week ending trading at 9626.
On the currency markets last week, the Pound had the best of the trading, for a change. The Dollar was weaker against Sterling by 1.7% closing at 1.62277 to the Pound. The Greenback was also lower against the Euro by 1.6%, to close at 1.4084. The Dollar was higher against the Japanese currency at 81.234 to the Yen, a gain of 0.62% on the week. It has been widely predicted that a further round of quantitative easing would cause the Dollar to weaken against the other majors.
The Euro closed higher against the Yen ending at 114.41, making 2.3%. The Euro weakened slightly against Sterling over the course of the week by 0.08%. The close saw one £ buying 1.15221€.
On the commodities market, the price for Brent crude was higher, closing at $88.1 per barrel (for December delivery); a rise of 6% over the course of the week’s trading. The value of gold climbed again closing at 1393.8 per ounce, representing a gain of 3.7% over last week’s value.