Selling has long continued to be uncontested earlier last week with testing lows reported in the mid-March survey. The FTSE 100 is down 50 points which lost well over 110 points since last week.
ECB playing down its prospects
Still the focus still remains to the downside for most of the global markets at present. The ECB which had already augmented its hopes of a new monetary policy last week, has been very busy with its prospecting aspirations suggesting that it will not bring any change in its policy for the interim. In the meantime, the upheaval in the Ukraine indicates that there might me another situation that is developing as popular discontent in the country is piling up against the government in Kiev.
There has been long-term trends seen which was coming under pressure in the United Kingdom today with even the solid dividend-paying stocks still unable to break away from the turmoil. Several big companies all took a substantial hit which the improved manufacturing and industrial production data from the United Kingdom has done meagrely in reassuring the mid-cap U.K.-focused index. Moreover, the recent IPOs are generally firm out of favours all of which plummeted below the float price.
Traders anticipate earning season
The shakeout in the American markets are presently continuing quite well with the only temporary gains made early in the trading were relatively on the middle-ground. The proximity of the U.S. earning season will surely be playing a significant part where investors are fixated on their belief that there is still plenty of room for growth in its economy. Plenty of mileage are left in the tank for the stock market rally, however it looks as if they would instead sit on the sidelines unless and until there is a clear and precise trend from the upcoming period report is
Cautions from the IMF regarding the emerging market economies are being added to the present crisis. Most especially that the most of these new economies are now much more incorporated in the global markets than they were over a decade ago. As long as the late-March lows in the Dow Jones along with the S&P 500 maintain its levels, investors can significantly retains a degree of relief.
Gold moving beyond the $1300 value
The precious yellow metal enjoyed a value above the $1300 earlier last week, taking it to levels not anticipated for the past two weeks. The dollar weakness is without a doubt playing an important role coupled with silver pushing above the $20 as well which in a longer-term position despite the potential difficulty that gold will still maintain and sustain real gains from this point onward. The possibility of a Fed tightening during the 2015 period and the absence of a new quantitative easing from other central banks is indicative that there is precious little reason for the precious yellow metal to be pushed from its present level.
Cable bolstered by economic data
Sterling was able to perform relatively well in the FX sphere after the positive industrial and manufacturing data and improvement from the IMF. According to the IMF, the United Kingdom will most probably lead the G7 in expansion terms with economic expansion at the 2.9 % level during the start of the year which is regarded as a leap in terms of change from 1.5 % estimate for the publicised year. Finally, Sterling was able to for a short time land on the $1.68 level earlier this year which was considered its highest level in more than four years with last week’s move meant that the level will once again just be a short leap away.