By: Dr. Mike Campell
In the aftermath of the Japanese earthquake, tsunami and ensuing nuclear power plant crisis, last week was a turbulent affair on the world’s stock and currency markets. Not surprisingly, all the world’s major markets closed lower.
In Europe over the course of the week, the FTSE shed 1.9%, closing at 5718.1; the Dax fell by 4.5% to close at 6664.4; the CAC fell by 3% to end the session at 3810.2.
The Dow ended the week down to the tune of 1.5%, finishing the trading session at 11858.5. The Nasdaq ended the week lower, shedding 2.7% to close at 2643.7.
The Nikkei closed down by 10.2% to end the trading session at 9206.8. Over the week, the Nikkei saw substantial volatility, but strengthened at the end of the week on news of the G7 intervention.
Currency Markets Review
On the currency markets last week, the Yen saw considerable strengthening before the G7 stated that they would act in concert to reduce volatility in the currency market. The Dollar was weaker against Sterling, falling 1.1% closing at 1.61707 to the Pound. The Greenback was down against the Euro last week, shedding 2.6% to close at 1.4130. The Dollar was weaker against the Japanese currency, closing at 81.1607 to the Yen, a loss of 1.3%.
The Euro closed up against the Yen ending at 114.68, making 1.3% over the course of the week. The Euro strengthened against Sterling over the course of the week by 1.4%. The close saw one £ buying 1.14443.
Commodies Market Review
On the commodities market, the price for Brent crude ended essentially unchanged, despite volatility in the markets caused by the situation in Libya, closing at $113.9 per barrel (for May delivery); a gain of 0.08% over the course of the week’s trading. The value of gold also strengthened last week, closing at 1420 per ounce; representing a gain of 0.6% over last week’s value.