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30 Jul, 2010 - World & FTSE Market
Update
World Markets
Update
A run of positive data from Asia, America and Europe has seen the
markets rise steadily this week, signalling to investors that
growth remains albeit slower than expected.
On Wednesday European stocks rose to a 12 week high after better
than expected earnings from some of the region's biggest companies.
On Thursday this was further underpinned by positive Shell earnings
after competitors BP had announced record loses earlier in the
week.
Economists have become more bullish in the past week, predicting
big gains for global equities. BlackRock's Bob Doll said that US
equities could potentially gain 30% over the coming year. In
addition, US unemployment figures decreased last week, but at a
slower than expected rate.
In Europe, confidence is slowly rising with German unemployment
down for the 13th consecutive month and the stress tests results
improving sentiment within the region. Europe's banks clawed back
losses made before the stress tests results were announced.
On Friday US GDP data saw equities fall as growth of 2.4% just
missed out on the expected figure of 2.5%. In addition, weaker
German sales and increasing Spanish unemployment added to market
woes.
Asia was weaker on Friday as the yen strengthened and Japanese
industrial production and inflation figures also came in lower than
expected.
FTSE Market Update
The FTSE 100 has been holding steady this week after better than
expected European bank stress tests boosted Europe's and the UK's
banking sector.
However, on Friday disappointing US GDP weighed heavily on Wall
Street and European Markets with the FTSE erasing gains for the day
as miners lost the most. In the previous session the FTSE had
reached the highest level since early May as positive UK GDP data
boosted confidence.
At 16.18 BST the FTSE was down 0.2% at 5,298.82, but it still
stands nearly 8% higher over the past month.
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