Please find below the Morning Report from David Evans, market analyst at BetOnMarkets.com
The FTSE is currently indicating a lower opening, as traders are waiting for the release of the UK Industrial Production numbers. Analysts are hoping that the numbers will show an improvement in the economy. Should the analyst be right, look for the FTSE to get a nice boost.
Will the stock markets break the four-week losing streak? (BetOnMarkets)
Last week, major stock markets marked their fourth losing week in a row. The Dow fell 6.2% on the week while the S&P 500 fell 7%. Both major indices have now fallen 24% in 2009 alone, with the S&P 500 hitting its lowest level since September 1996. Gold closed the week unchanged after a volatile week that saw it dip below $900 briefly. Oil managed to gain slightly, holding above the $45 marker.
Credit Crunch Springs Back into Action (BetOnMarkets)
After taking some time off between Christmas and New Year, the credit crunch was well and truly back in action last week. Fears over further banking problems and sovereign debt downgrades for the likes of Ireland and Greece surfaced last month, but until now, these fears have merely been simmering in the background.
British and American economies are still on sick list
Equitieswere firmly on the defensive last week, with all the majorinternational stock indices trading in the red. The negative sentimentset in after Wednesday’s ADP Non Farm Employment figures fell by693,000 between November and December, which was way ahead of consensusestimates.
Extremism market trends baffles even the most seasoned - BetOnMarkets
Last week US equities ended a volatile week with big rallies on Friday, but these only came after the benchmark S&P 500 index had plunged to levels not seen for over a decade on Thursday. Despite Friday's 6%+ rallies on the Dow Jones and S&P 500, those markets still finished the week down 5.31% and 8.39% respectively.