By: Dr. Mike Campbell
Friday marked the last full week in June and the end (for me anyway) of the second quarter of 2010 for these reviews. So it’s time to look back at June and also see how things have changed over the quarter. All of the markets ended Q2 lower than they were when it started. In Europe, the FTSE lost 1.5% in June, closing at 5046.5 and representing a loss of 12.2% over Q2; the CAC made 1.8% over the month but ended Q2 down by 12.8% at 3519.7; the Dax put on 2.2% in the course of the month but still ended the quarter down by 2.7% at 6070.6 – in the circumstances, a great performance.
In the USA, the Dow ended the month up by a respectable 2.1% but fell by 7.2% over Q2, finishing the trading session at 10143.8. The technology heavy Nasdaq made just 0.2% last month, closing at 2223.5 and ending the quarter 7.5% lower.
The Nikkei gave the poorest performance of all the major markets in Q2, falling by 13.7% to close at 9737.4; it weakened by 1.7% during the month.
On the currency markets the Dollar was mixed last month; a story repeated over the course of the quarter. It lost significant strength against the Yen, ending the month 3.5% lower at 89.46 to the Dollar, slipping by 4.6% over the quarter. Against the Euro it weakened by 1.9% over the month, closing at 1.2294, but amid the sovereign debt turmoil it still made 8.7% against the Euro over the course of Q2. The Greenback was weaker against the British Pound, dipping 1.9% in June to close at 1.4830, but again making 2.6% over Q2.
The Euro lost further ground against the Yen last month closing at 109.99, down by 1.5%. Over Q2, the Euro shed 12.9% of its value against the Yen. It was weaker against Sterling in June by 0.48% and it ended the quarter 7.4% lower against the Pound. The close saw one £ buying 1.21418€.
On the commodities market, the price for Brent crude oil was higher against last month’s mark closing at 78.12$ per barrel (for August delivery), the price of Brent crude fell rose by 8.2% during the month but still ended the quarter down 7%. The value of gold has continued to rise, closing at 1244.6 $ per ounce and has gained another 3.3% over the previous month’s close: it has appreciated by 10.4% in the second quarter of 2010.
FOREX: June and Q2 In Perspective
Dr. Mike Campbell is a British scientist and freelance writer. Mike got his doctorate in Ghent, Belgium and has worked in Belgium, France, Monaco and Austria since leaving the UK. As a writer, he specialises in business, science, medicine and environmental subjects.