Euro Strengthens on IMF Confidence: Spreadex Trading Week Review

Calendar March 15, 2010 | Posted by Robert

The Markets Last Week:

Citigroup led the bank rally last week, and news that Barclays aims to acquire a US retail bank also encouraged the sector.

The Dollar fell in most of its pairings, sparking Cable’s end-of-week surge, and the IMF’s confidence in Spanish and Portuguese approaches to debt helped the Euro to recover.

In the UK, both Wm Morrison and JD Wetherspoon were bullish, reporting higher than anticipated profits.

Pharmaceuticals were down, as AstraZeneca and Roche’s latest competing cancer treatments both failed to meet primary objectives late in testing, and Glaxo faces liability over a currently circulating diabetes drug.

The Week Ahead:

Few corporate earnings are expected this week, but foreign exchange markets will listen carefully to the US Treasury International Capital report Monday, as its foreign demand data affects the Dollar ‘s relative strength.

Other market movers that day include Industrial Production data and the Housing Market Index. Tuesday’s news will be comprised of Housing Starts, which have a wider-reaching economic effect than the previous day’s report, along with the federal funds benchmark rate from the US.

The EU’s Harmonised Index of Consumer Prices will show a comparable measure of inflation for countries using the common currency, and miner First Quantum Minerals will announce results.

Wednesday holds UK Unemployment data, while US Jobless Claims and Consumer Price Index news come on Thursday. Also that day, the UK Industrial Trends Survey will indicate the trajectory of output, costs, prices and exports.

Salamander Energy releases results that day, and further mining results appear from European Goldfields Limited and London Mining. Volatility is expected towards the end of the week, as the main equity index futures expire on Friday.

The above comments do not constitute investment advice and neither Spreadex nor SpreadBets.org.uk accept any responsibility for any use that may be made of them.

By David Rees, Spreadex.

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