Erik's blog

Today, world stock markets have crumbled under the relentless barrage of bad news. Investors are flocking to safe havens with the yield on 10 year Treasury bonds sinking to 2.7% and gold pushing up 3% to $370. The Dow Jones Industrial average is just over 0.5% from revisiting the November lows. Despite the dramatic collapse in the banking sector, the FTSE has held up relatively well over the same period, holding around 6% above those lows.

The FTSE is currently indicating a weaker opening, after the rightmove house index showed a 9.1% drop in year over year in home prices. While Monday is expected to be a quiet day, with North America on holiday, Tuesday promises to be a day full of volatility. Between the CPI and retail sales data, we should get a good picture at how the British economy is doing.

World stock markets are mixed, with the FTSE 100 nudging ahead on a day of tepid trading. The better than expected figures from Barclays has certainly given UK equities on boost, but it is not enough to make the UK’s benchmark index of 100 stocks push through Friday’s trading range. 
 

A Better Week for World Stock Markets

It was a better week for world stock markets last week, with all the major indices pushing further off the January lows.

Markets are roaring higher this afternoon on better than expected economic data from the US. Today’s better than expected ADP jobs report augurs well for Friday’s all important Non Farm Payroll data. Markets are also encouraged by the noises coming from the Obama administration on the use of tax breaks to stimulate the troubled car market.
 

BetOnMarkets Weekly Briefing

PLEASE NOTE - All times GMT

Monday February 2nd:

UK - Tentative - Halifax HPI M/M.

EU - 09:00 - Final Manufacturing PMI.

UK - 09:30 - Manufacturing PMI.

US - 13:30 - Core PCE Price Index M/M.

US - 13:30 - Personal Spending M/M.

US - 13:30 - Personal Income M/M.

US - 15:00 - ISM Manufacturing PMI.

US - 15:00 - ISM Manufacturing Prices.

US - 15:00 - Construction Spending M/M.