Last week all of the world’s major stock indices losing ground as fears that the Federal Reserve will scale back its stimulus measures persisted.
In Europe over the course of the week, the FTSE was down by 1.6%, it closed at 6308.3; the Dax ended at 8128 falling 1.5% over the course of the week; the CAC was down by 1.7% to end the session at 3805.2.
The Dow ended the week lower, slipping 1.2% to end at 15070. The Nasdaq composite index ended at 3423.6, falling 1.3% over the course of the week.
The Nikkei 225 ended the week’s trading down by 1.5% to end the session at 12687.
Currency Markets Review
On the currency markets last week, the Yen again saw the best of trading. The Dollar was weaker against Sterling last week, closing at 1.5707 to the Pound; a fall of 0.99% over the week. The Greenback weakened against the Euro last week slipping by 0.83% to close at 1.3344. The Dollar was weaker against the Japanese currency, closing at 94.34 to the Yen, making a loss of 3% during the week.
The Euro weakened against the Yen ending at 125.9, a loss of 2.2% over the course of the week. The Euro lost ground against Sterling last week falling by 0.16%; the close saw one £ buying €1.1771.
Uncertainty has returned to the markets and the decline of the Yen has been arrested. The Dollar has weakened by 7.8% against the Yen since the middle of last month: over the same period, it has lost just 0.16% against the Yuan. This fact is not supported by fundamental analysis and is proof, if any were really needed, that China does interfere in the markets to keep its currency competitively priced.
Commodities Market Review
On the commodities market, the price for Brent crude ended higher, at $105.9 per barrel (for August delivery); a rise of 1.3% over the course of the week’s trading. The value of gold was higher last week, closing at $1391.3 per ounce, representing a gain of 0.38% over previous week’s value.