Saturday, 28 March 2009

The markets this week

Whilst daily updates on the state of the stock markets, and currency and commodity markets can be useful, they can often mask trends.

Therefore, every week (when I remember) I will publish here the change from Friday close to Friday close of the following: FTSE, DOW, $/£ rate, €/£ rate, Oil price, Gold price (using offical $ rates and unofficial translations into £ and €).

FTSE: up 56 points or 1.46%
DOW: up 497.8 points or 6.84%
£: down 1.39 US cents or 0.96%
£: up 1.19 Euro cents or 1.12%
Oil: up 11 US cents, 42 pence or 88 Euro cents
Gold: down $30, £14.55 or €7.81

My view: FTSE flat, DOW up (mostly thakns to $1.2tn toxic asset purchase scheme) are both news of increased optimism on the markets. The falling £ is a bad sign (as I think economic recovery globally would lead to a recovery of the £) - but having said that, the € fell by more, which might imply great market confidence in the US recovery plans.

Oil rising and gold falling are both signs of increased optimism.

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