Market overview for Friday 7th October2011. |
Currencies Ratings downgrades for Italy and Spain knocked the wind out of the euro on Friday, and traders said anxiety about Europe's economy and fragile banks will likely continue to hobble it in the weeks ahead. The debt crisis continued to hurt the euro, which slipped 0.4 percent to $1.3373, off a $1.3524 session high. The euro relinquished earlier gains after Fitch cut the credit ratings of Italy and Spain -- the third and fourth largest euro zone economies -- citing a worsening euro zone debt crisis and fiscal situation in both countries. In addition, Moody's Investor Service, another ratings agency, put Belgium's ratings on review for a possible downgrade, citing long-term funding risks and high public debt. The dollar rose against the yen and the Swiss franc, up 0.2 percent to 76.85 yen and up 0.8 percent to 0.9280 francs. Sterling may struggle as well, though it rose 0.7 percent to $1.5545 on Friday, it remained near Thursday's 14-1/2-month low beneath $1.53, hit after the Bank of England said it would pump another 75 billion pounds into the economy. | | |
Energy Oil prices edged higher in volatile trading on Friday and posted a weekly gain as supportive U.S. jobs data and ratings downgrades of Spain and Italy buffeted markets. Both Brent and U.S. crude futures recovered late after retreating when Fitch cut Spain's credit ratings minutes after downgrading Italy, saying the intensification of the euro zone debt crisis has hurt the entire region. Brent crude for November edged up 15 cents to settle at $105.88 a barrel, trading from $104.37 to $106.64. U.S. November crude rose 39 cents to settle at $82.98 a barrel, having traded between $81.36 and $84. U.S. crude jumped 4.7 percent for the week, the best weekly percentage rise since the week to March 4. |
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Precious metals Gold fell around 1 percent on Friday, as bullion investors raised cash to cover margin calls amid losses in the equity markets after Fitch downgraded the credit ratings of Spain and Italy. Gold fell 0.9 percent to $1,633.69 an ounce. During the session, it traded as high as $1,665.99. U.S. December gold futures settled down $17.40 at $1,635.80. Trading volume was thin for a third consecutive session, suggesting recent gains could be short-lived. Silver was down by 2.3 percent at $31.17 an ounce. Platinum has dropped more than 16 percent over the last month, tumbling to its lowest in nearly two years. Signs of a slowing global economy and weakening industrial demand have pressured platinum, used as an auto catalyst. | | |
Stock indices After nearly falling into bear-market territory, U.S. stocks on Friday finished the week higher, building gains on encouraging jobs data and hopes that Europe is dealing with its debt crisis. Downgrades of Spain's and Italy's credit ratings on Friday brought in sellers, causing stocks to close lower and highlighting how markets are pushed and pulled by headlines from Europe. The Dow Jones industrial average was down 20.21 points, or 0.18 percent, at 11,103.12. The Standard & Poor's 500 Index was down 9.51 points, or 0.82 percent, at 1,155.46. The Nasdaq Composite Index was down 27.47 points, or 1.10 percent, at 2,479.35. Helping the U.S. jobs picture Friday, the U.S. Labor Department said on Friday employers last month added more jobs than analysts had expected. While the U.S. unemployment rate held steady at 9.1 percent, nonfarm payrolls data for July and August also were revised upward. | | |
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