Weekly Trading Update
29.08.14 Friday Morning
After Bank Holiday Monday, the FTSE was up 23 points on Tuesday as London investors played catch-up. The Jackson Hole meeting showed that Federal Reserve Chair Janet Yellen believes labour markets still have further to heal before economies can weather higher interest rate rises. Although European Central Bank President Mario Draghi acknowledged that he may need to deploy fresh stimulus if the threats to tighten policy from the Bank of England and the Fed are realized, the euro reached an 11-month low following Draghi’s comments claiming the ECB would be willing to respond with all its “available” tools.
On Wednesday, for the first time in its history, the S&P 500 closed marginally above the 2000 level. This was thanks to the release of Consumer Confidence leading to the gains in America’s largest ever jump to 92.4. The euro continued its poor performance by hitting its lowest level in a year against the dollar as expectation grew that the European Central Bank will act soon to counter low growth and inflation. Elsewhere in Europe, German consumer sentiment fell for the first time since early last year, with the 200 consumer surveyed rating the relative level of past and future economic conditions at an 8.6 rating, as opposed to the 8.9 expected.
The supermarket industry sales figures continued to worsen; Tesco’s sales fell 4% year on year whilst Sainsbury’s saw a slight dip in their share to 16.4%.
Additionally, Wednesday saw a jump in share price for British online fashion retailer ASOS. Having had its shares fall sharply in recent months, after profit warnings and a warehouse fire, the share price rose significantly following a report of an unconfirmed U.S bid for a stake in the business. Although ASOS declined to comment on the rumoured bid, the share price, which had fallen by almost two thirds this year, surged 13.5%.
On Thursday, as geopolitical conflicts between Russia and Ukraine resurfaced, European stocks continued to trade in the red, dropping from one-month highs. Investors reduced their exposure to risk after pro-Russian rebel’s widened their attack on Ukraine’s forces. This re-apparition of political unrest sent the price of gold $13 dollars higher to trade, just shy of $1300 an ounce, as investors rushed into the precious metal as a safe haven.
As Ukraine president Petro Poroshenko accused Russia of an invasion, both European and US markets traded in the red, however the losses were not as severe as previous occasions. US president Barack Obama was quick to comment on the situation stating that there would be no military confrontation between the US and Russia.
Stock of the Week: AstraZeneca
AstraZeneca’s stock rose significantly again this week after giant US company Pfizer started to weigh its options as it contemplates renewing its pursuit of AstraZeneca. Although the share price is not as high as it was when the first takeover offer collapsed in May, major shareholders are said to have been keen for talks to continue between the two companies. In addition, the company’s promising cancer drug pipeline received a boost on Friday as the company moved its immune-oncology medicine MEDI-4736 into a mid-stage study in colorectal cancer.
Open (Monday)
6793.2
Close (Thursday)
6814
Change
0.3%
High
6830.8
Low
6779.5
Open (Monday)
17011.5
Close (Thursday)
17102.5
Change
0.5%
High
17152.5
Low
17018.5
Open (Monday)
1281.35
Close (Thursday)
1291.35
Change
0.7%
High
1297.35
Low
1275.35
Open (Monday)
1.6543
Close (Thursday)
1.6589
Change
0.2%
High
1.6614
Low
1.6537
Economic Calendar:
Monday
- GBP - Manufacturing PMI
- AUD – Building Approvals m/m
- JPY – Average cash earnings y/y
Tuesday
- AUD – Cash Rate
- USD – ISM Manufacturing PMI
- CNY – Non-manufacturing PMI
- EUR – Spanish Unemployment change
Wednesday
- GBP – Services PMI
- EUR – Retail Sales m/m
- CAD – BOC Rate Statement
- AUD – Trade Balance
- JPY – Monetary Policy Statement (Tentative)
Thursday
- JPY – BOJ Press Conference
- GBP – Asset Purchase Facility
- GBP – Official Bank Rate
- EUR – Minimum Bid Rate
- CAD – Trade Balance
- EUR – ECB Press Conference
- USD – Trade Balance
- USD – Unemployment Claims
- USD – ISM Non-Manufacturing PMI
Friday
- CAD – Employment Change
- CAD – Unemployment Rate
- USD – Unemployment Rate
- CAD – Ivey PMI
Earnings Calendar:
Monday
- Falkland Oil and Gas Ltd – half year earnings release
Tuesday
- Redrow PLC – full year earnings release
Wednesday
- Spirit Pub Company PLC – trading statement release
- Hargreaves Lansdown PLC – full year earnings release
- A & J Mucklow Group PLC – preliminary earnings release
Thursday
- Go-Ahead Group PLC –preliminary earnings release
- Redde PLC – full year earnings release
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
