Weekly Market Report - 15 December 2008
"Another week of high drama in the financial markets culminated with the collapse of the $15 billion bailout talks for troubled US carmakers and European Union leaders backing plans for a €200 billion fiscal stimulus package in response to what is now certainly the worst financial crisis for 80 years. Economic data continued to show further sharp deterioration in the global economy. On Wednesday, yields on 3 month US treasury bills turned negative for the first time in post-war history, meaning investors are now prepared to pay for the privilege of owning US government debt. This is a stark reminder of the extreme investor risk aversion we are seeing in the current environment."
Market Commentary by Fergus Murison - October 2008
"Since my recent report there have been a number of significant market events which may well prove key elements in the market movements going forward.
1) Dollar/Yen has broken through 100 convincingly. Regular readers will know that I have been expecting this move for some time as there is a capitulation of the carry trade and the Bank of Japan realises that it cannot buy dollars forever.
2) US treasury long bonds hit an all time low yield, and there was a lot of comment about it.
3) The Nikkei index made a new 26 year low. Having peaked just below 40,000 it traded at 7,100 this morning in Tokyo, before reversing to post an 8.9% gain..."
18 November 2008 - RPI inflation decreased from 5.0% to 4.2% in October and CPI decreased from 5.2% to 4.5%.
6 November 2008 - The Bank of England Monetary Policy met today and voted in favour of reducing interest rates from 4.5% to 3.0%.