Downhill Racing Is Still Investors' Favourite Sport

Published by Filipe R. Costa on Mon, 07/03/2011 - 18:04
downhill racing

Another day of instability followed in stock markets, with the FTSE closing at 5973.78 points, -0.28%. The session started very well, with the FTSE able to hit 6043 points, but as usual in the last couple of days, after the US opening, we assisted at a downhill race from this index.

Investors are still very cautious and sensible to any piece of information. Unfortunately,  Libya is near a civil war, and the Brent crude hit 118.47 USD, a maximum only seen in August 2008. If oil prices keep rising, equity markets won’t hold any gains for long, since companies will see their profits affected. This has been a major concern, and today it is leading the Nasdaq down more than 1.75%.

Gold is still very bullish, and another maximum was hit. Gold traded as high as 1444.5, although losing some steam lately.

The Euro zone is not safe from trouble. Moody’s downgraded Greece debt this morning, but investors do not seem concerned, and the Euro was able to post another maximum at 1.4035. The US Dollar is not able to calm investors concerned with the Middle East crisis that prefer to hold the Euro currency.

Today, the cable hit 1.6340, but during the session 80 points were eroded from the pair, that edged down to 1.6220 at UK markets close.