By: Dr. Mike Campbell
All of the world’s major markets closed lower last week amid threats from the ratings agencies to downgrade Eurozone credit ratings.
In Europe over the course of the week, the FTSE slipped by 2.57% and closed at 5387.3; the Dax ended the week at 5701.8, shedding 4.7% over the week; the CAC fell by 6.3% to end the session at 2972.3.
The Dow ended the week lower to the tune of 2.6% at 11866.4. The Nasdaq composite index ended the week at 2555.3, falling 3.5% over the course of the week.
The Nikkei closed down over the course of the week’s trading, dropping 1.6% to end the trading session at 8401.7.
Currency Market Review
On the currency markets last week, the Dollar saw the best of trading. The Dollar was stronger against Sterling, climbing 0.93% and closing at 1.55422 to the Pound. The Greenback strengthened against the Euro last week, making 2.4% to close at 1.3064. The Dollar made ground against the Japanese currency closing at 77.8475 to the Yen, a gain of 0.23% on the week.
The Euro closed down against the Yen ending at 101.7 falling 2.3% over the course of the week. The Euro was also weaker against Sterling over the course of the week by 1.5%; the close saw one £ buying 1.1897.
Commodities Market Review
On the commodities market, the price for Brent crude ended lower, closing at $103.4 per barrel (for January delivery); a loss of 4.9% over the course of the week’s trading. The value of gold fell last week, closing at $1594 per ounce, representing a loss of 6.7% over last week’s value.