By: Dr. Mike Campbell
The gains made two weeks ago were largely reversed when Greece insisted that it would put the EU bailout to a referendum. By the end of the week, the idea was dead in the water and confusion ruled. The upshot of this was that all the world’s major markets closed lower.
In Europe over the course of the week, the FTSE shed 3.1% and closed at 5527.2; the Dax ended the week at 5966.2, falling by 6%; the CAC fell by 6.7% to end the session at 3123.6.
The Dow ended the week down 2% at 11983.2. The Nasdaq composite index ended the week at 2686.2, shedding 1.9% over the week.
The Nikkei closed down over the course of the week, losing 2.8% to end the trading session at 8801.4.
Currency Markets Review
On the currency markets last week, the Bank of Japan interceded to weaken the Yen, but the news was overshadowed by events in Athens. The Dollar was stronger against Sterling, making 0.69% and closing at 1.59 to the Pound. The Greenback strengthened against the Euro last week, making 2.7% to close at 1.3773. The Dollar made ground against the Japanese currency, following the BOJ move, closing at 78.0876 to the Yen, a rise of 3.1% on the week.
The Euro closed up against the Yen ending at 107.55, rising 0.24% over the course of the week. The Euro was lower against Sterling over the course of the week by 2.1%; the close saw one £ buying 1.1611.
Commodities Market Review
On the commodities market, the price for Brent crude ended higher, closing at $111.97 per barrel (for December delivery); a rise of 1.9% over the course of the week’s trading. The value of gold rose last week, closing at $1749 per ounce, representing a gain of 0.46% over last week’s value.