| The Energy heavy FTSE trudged behind its | | | | both sides of the Atlantic, but ends on a quiet |
| European peers and US markets, as oil stocks | | | | note with little data released on Friday. Monday |
| took a back seat, and domestic inflation fears | | | | sees the release of Core EU CPI, which could |
| dampened the buyers enthusiasm. Rumours hit | | | | impact on the Euros recent declines. Around |
| the newswires that UK inflation will be double the | | | | midday the US release of TIC net long term |
| expected rate. This news will make it easy for | | | | transactions will also impact on global currency |
| the BOE to make the decision to raise interest | | | | markets. Tuesday sees the release of a raft of |
| rates at the next central bank meeting. This is | | | | upper and middle tier US data. Top of the list is |
| yet another piece of negative news for the | | | | the Housing Starts and PPI data. On Wednesday |
| FTSE, which has spent most of the year in the | | | | we have the release of the minutes from the last |
| red. The CPI number released next week could | | | | MPC meeting. Considering recent developments, |
| add further negative pressure on the UK | | | | these minutes may be slightly obsolete, but will still |
| benchmark index. | | | | be scoured for hints of future policy directions. |
| Underwriters of the HBOS rights issue breathed a | | | | Thursday brings UK retail sales and US |
| huge sigh of relief as the bank rose above the | | | | unemployment claims. |
| discount level, which would have caused them to | | | | Although markets ended the week on a positive |
| step in and take up the issue at a bad price. The | | | | note, European indices still ended well down. US |
| UK banking stocks finished down on the week, | | | | inflation is still sky high. Everything from hospital |
| but managed to close significantly above the lows | | | | services to education is costing more. To make |
| as bargain hunters entered the market. At one | | | | matters worse, recent US home foreclosure data |
| stage Barclays dipped below £3.00 a share | | | | has indicated that one in every 483 US |
| for the first time in a decade before closing the | | | | households experienced a foreclosure filing during |
| week at 3.23Euros. | | | | the Month of May. In some parts of California, this |
| Oil dropped slightly at the end of the week as | | | | figure stands at an incredible 1 in 66 houses. ECB |
| comments from Saudi Arabia reassured investors | | | | president Trichet recently commented that much |
| that supply would be increased. However, this | | | | depends on the trajectory of the US housing |
| pullback has to be put into the perspective of the | | | | market. If he is correct then the feared global |
| rapid price advance over the last few weeks. Just | | | | depression may be more real than people are |
| a few weeks ago $133 a barrel would have set | | | | prepared to believe. |
| headlines blazing; now it is a welcome pullback, | | | | The FTSEs high from last year was 6754; roughly |
| with oil still well within the $130 to $139 trading | | | | 200 points shy of its peak in 1999. It could be |
| range of the last few days. | | | | argued that it will be a long time before these |
| On the currency markets, the Euro finished the | | | | levels are seen again. According to traders, a No |
| week well down against the Pound and the Dollar. | | | | Touch bet on the FTSE to not to touch 6800 at |
| Sellers were out in force after Irish voters | | | | any time during the next 6 months (180 days) |
| rejected the EU reform treaty by a narrow | | | | could yield a return of 18%. |
| margin. The Lisbon treaty has to be ratified by | | | | is the world's leading Fixed Odds Financial Trading |
| every country before coming into effect. Every | | | | website. Fully licensed and regulated globally, |
| other country elected to allow their national | | | | handles around 18,000 trades a day, from over |
| governments to ratify the treaty, but Irelands | | | | 130,000 registered clients. Over 15 million trades |
| democratic vote has thrown the treaty and | | | | have been processed since inception in 2000. The |
| potentially further EU integration into disarray. With | | | | multi-award winning allows traders to speculate on |
| increasing divisions within the Eurozone over rates | | | | the movement of the worlds' major financial |
| policy, the single currencies detractors were out in | | | | markets, up down or sideways without actually |
| force. | | | | owning the market, stock or currency you are |
| Next week starts off with some heavy data on | | | | buying. |