Week ended 2 May 2009 – Markets, Commodities and currencies

Posted by admin on 3 May, 2009 under Weekly business news summary | Be the First to Comment

I have decided to include more of the world stock market indices this week, as my blog is starting to get read more and more across the world by people from the UK, Europe, America, Australasia and the Far East.

Notably this week is the fall in the value of the Yen against Sterling and the US Dollar, falling by over 4% against UK Sterling and by 2.5% against the Dollar. However, the US Dollar has suffered too this week and slid against Sterling by 1.6% ending close to $1.50 to the Pound for the first time in a while.

The reason for the weakening Dollar is due to the US economy contracting by more than expected at 6.1% in Q1 2009. Investors are focusing on a rise in private consumption for the first time since Q2 of 2008 combined with a sharp decline in private inventories.

In the short-run falling inventories hurt an economy and at a point where inventories have reached their optimal levels, companies will need to increase production to meet demand, as economies pick up again.

Due to the falling pace in contraction in the US economy The Federal Reserve is refraining from new stimulus announcements.

UK Sterling rose this week on comments by UK Chancellor Alistair Darling that he expects a UK economy to recover by the end of the year.
End of the week saw:
Stock exchanges:
FTSE 100: 4,243.22 GBX
FTSE 250: 7,571.33 GBP
UK All Share: 20,647.03 ZAX
US DOW: 8,212.41 USD
US S&P: 877.52 USD
US NASDAQ: 1,719.20 USD
Japan Nikkei: 8,977.37 JPY
China H Seng: 15,520.99
Australian ASX 200: 3,769.60 AUD
German DAX: 4,769.45 EUR
French CAC 40: 3159.85 EUR
Spanish Ibex 35: 9,038 EUR

Currencies
UK Sterling £ to US Dollar $ 1.49089
UK Sterling £ to Euro € 1.12313
UK Sterling £ to Japanese Yen 147.906
UK Sterling £ to Aus $ 2.03507
US Dollar $ to Euro € 0.753325
US Dollar $ to Japanese Yen 99.2063
US Dollar $ to Aus $ 1.36500

Commodities
Nymex Crude oil – $52.65
Gold – $887.90