Tag Archives: Oil Price

Market unease continues

Stock markets have recovered from their bout of extreme risk aversion with Sterling and the Euro trimming losses against the US Dollar overnight. Ben Bernanke warned yesterday that the US banking sector is yet to achieve stability and interest rate decision are due from the ECB and Bank of England tomorrow. The prospect of quantitative easing and more unconventional policy is fuelling investor uncertainty which is impacting on currency exchange rates. Continue reading

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Sterling under pressure

Sterling is under pressure this morning over losses in the banking sector. Lloyds is yet to strike a deal with the Treasury over inclusion in the Asset Protection Plan and HBOS has announced over £10 billion worth of write downs for 2008. GDP figures out in the US later today will be a source of interest for markets as growth prospects in the world’s largest economy remain a key driver of economic sentiment and currency exchange rates. Continue reading

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Record loss for RBS

The Pound is sitting lower this morning against the Euro and US Dollar after RBS has posted the largest loss in corporate history. The bank which is now 68% taxpayer owned lost £24 billion in 2008. In combination with GDP figures which showed the UK economy contracted -1.5% in the fourth quarter, this news damaged the exchange rate value of Sterling, sending it back to the bottom end of ranges against its international currency partners. Continue reading

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UK GDP contracts -1.5%

Figures released this morning show UK GDP contracted 1.5% in the final quarter of 2008. This takes annual growth to -1.9%; a figure largely in line with market expectations. Wall Street gained over 3% yesterday, the largest gain in a month, after comments from Head of the Federal Reserve Ben Bernanke quelled investor fears over the state of the US banking sector. Continue reading

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MPC Votes 8-1

The Sterling-Dollar exchange rate has declined this morning after the release of MPC minutes which showed an 8-1 vote for a 0.5% reduction in the base rate. David Blanchflower was again the dissenting voice within the Bank as he argued the 1% reduction should be taken ‘without delay’. Global equities remain bearish as unease surrounds global recovery prospects and this is putting pressure on European and Asian exchange rates.
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Risk aversion dominates

Risk aversion has returned to global markets following reports that the Japanese economy contracted by 3.3% in the 3 months to December. This was the largest contraction in 35 years and triggered a round of risk aversion which strengthened the Yen and US Dollar at the expense of most other currencies. Continue reading

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Pound Slumps Overnight

The Pound has slumped overnight, under pressure from negative data in the UK and the return of risk aversion internationally. European and US equities remain lacklustre as the Federal Reserve rescue package has undergone ‘nips and tucks’ in the interest of a compromise in the Senate. Continue reading

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U.K Unemployment 6.3%

Sterling has taken a dive against its major currency partners as the UK unemployment rate has risen to 6.3%. Global equities are in negative mode after market reaction to the Federal Reserve rescue package was luke-warm, fuelling gains in the safe haven currencies overnight. Continue reading

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Markets await rescue package

Global equities have continued to gain ground this morning, fuelled by optimism surrounding the pending announcement of the Federal Reserve rescue package. This is despite further negative economic data from the UK and Eurozone and the package is expected to support risk appetite internationally. Continue reading

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Bank cuts to 1%

The Bank of England reduced the cost of borrowing yesterday to a new historic low of 1%. This was in line with market expectations and served to strengthen the Pound internationally. The ECB voted to leave rates unchanged at 2% and the Euro is coming under increasing pressure due to the lack of decisive policy action from the ECB. Continue reading

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