The ECB’s move to manage the borrowing costs of highly indebted nations in receipt of IMF/EU bailouts was well received by the markets and a constitutional challenge to Germany’s participation in the European Stability Mechanism and tighter fiscal union was (largely) dismissed. Markets around the world and the Euro closed higher on a return of optimism.
In Europe over the course of the week, the FTSE was up by 2.1%, it closed at 5915.6; the Dax ended at 7412.13 rising by 2.7% over the course of the week; the CAC was up by 1.8% to end the session at 351981.6.
The Dow ended the week higher to the tune of 2.2 % at 13593.4. The Nasdaq composite index ended at 3184, making 1.5% over the course of the week.
The Nikkei closed up over the course of the week’s trading, making 3.2% to end the trading session at 9159.4.
Currency Markets Review
On the currency markets last week, the Euro saw the best of trading. The Dollar was weaker against Sterling, shedding 1.4% and closing at 1.624278 to the Pound. The Greenback was weaker against the Euro last week, falling by 2.7% to close at 1.314087. The Dollar made ground against the Japanese currency, closing at 78.21881 to the Yen, a gain of 0.1%.
The Euro recovered against the Yen ending at 102.7863, a gain of 2.8% over the course of the week. The Euro was stronger against Sterling over the course of the week, making 1.3%; the close saw one £ buying 1.23605.
Commodities Market Review
On the commodities market, the price for Brent crude ended higher, closing at $116.7 per barrel (for November delivery); a rise of 2.1% over the course of the week’s trading. The value of gold was higher last week, closing at $1775.5 per ounce, representing a gain of 2 .8% over last week’s value.