Christian Debt Recovery

Greek Debt Crisis Goldman Sachs

December 14th, 2008 |

Author: Gavin

greek debt crisis goldman sachs

Weekly Binary Options Analysis May 3-7

Indices

U.S. stocks lost ground in the past week as concerns deepened that Europe’s debt crisis may derail the global recovery. These, along with proposed legislation that may hurt the financial sector, overshadowed a string of positive earnings and pledges by the Federal Reserve to keep interest rates low.

For the week, the S&P 500 declined 2.5 percent to 1,186.69, but the index ended April up 1.3 percent. The Dow Jones Industrial Average fell 1.75 percent through the week to 11,008.61. For the month, the Dow rose 1.4 percent

European stocks tumbled as Standards & Poor’s cut its credit ratings for Greece, Portugal and Spain sparking concerns that Greece’s debt crisis was spreading. The UK’s FTSE 100 fell 3 percent to 5,553.30, ending the month down 2.2 percent. Germany’s DAX dropped 2.9 percent to 6,135.70, and fell 0.9 percent through the full month, while France’s CAC 40 declined 4.5 percent to 3,816.99, and by 4.5 percent for the month.

European woes and concern that China will take further steps to curb economic growth weighed on Asian markets, with Japan bucked the global downtrend as some of its mainstay companies posted positive earnings. Japan’s Nikkei 225 index rose 0.2 percent to 11,057.40 but fell 1.1 percent for the full month, while Hong Kong’s Hang Seng index dropped 1.8 percent to 21,108.59 and declined by 1.3 percent through April.

Elsewhere, India’s Sensex index fell 0.8 percent to 17,558.71 and was flat for the month, and Australia’s All Ordinaries decreased 1.7 percent to 4,833.90, and by 1.3 percent for the month.

Forex

The euro fell to its lowest value in almost a year against the dollar as European leaders intensified negotiations over Greece’s bailout. The currency rebounded towards the end of the week as confidence that a deal would be struck rose. The dollar also strengthened on speculation that the Federal Reserve was moving closer to withdrawing stimulus as the economy recovers, and as it pledged to keep interest rates low.

Through the week, the euro weakened by 0.7 percent against the dollar to close at $1.3393. The dollar was flat for the week against the Japanese yen at JPY 93.855, while against the British pound, the greenback rose 1.2 percent.

Commodities

Gold rose 2.1 percent through the week to $1,180.10 an ounce as the Greece’s budget crisis prompted some investors to seek alternative assets. The increase came despite the stronger dollar, which often moves inversely to gold.

Crude oil gained 2.9 percent to $86.15 per barrel on speculation that Chinese demand will boost consumption of commodities and signs of improved demand from the U.S. A government report showed that U.S. refineries were operating at 89 percent of capacity, the highest rate in almost two years.

Crude Oil (April 26-30)

Stocks

Banking shares fell Monday as Congress prepared to vote on whether to debate on a financial overhaul. JPMorgan Chase and Goldman Sachs Group led declines while Citigroup dropped 5.1 percent as the Treasury Department planned to sell up to 1.5 billion shares. Caterpillar rose 4.2 percent after posting its first earnings increase in seven quarters. In Europe, BHP Billiton and Xstrata increased as metals prices rallied in London. TomTom jumped after the maker of portable navigation devices reported an unexpected profit. Toyota gained 3.4 percent in Tokyo after the Nikkei newspaper said the company had an annual operating profit instead of the loss Toyota had forecast.

On Tuesday, Alcoa Inc. and Caterpillar Inc. led declines while Ford Motor fell 6.2 percent after an analyst said first-quarter results were unsustainable. Goldman Sachs Group rose as executives testified to a Senate subcommittee about mortgage securities. European mining shares, BHP Billiton and Xstrata, declined as metals prices fell. Banco Popular Espanol fell 6.1 percent after saying that first-quarter profit slipped. National Bank of Greece dropped 10 percent in Athens. In Asia, the Industrial & Commercial Bank of China Ltd. sank 1.6 percent on concern lending will slow, while PetroChina fell 2.3 percent on lower oil prices.

Mid week saw Dow Chemical rise 5.9 percent and insulation producer Owens Corning Inc. rally 11 percent as profits beat analyst forecasts. Goldman Sachs Group gained 2.6 percent after defending its business practices to a Senate panel. In Europe, Nobel Biocare Holding’s first quarter revenues fell weighing on its shares, while wind turbine maker Vestas Wind Systems dropped 4.6 percent after reporting an unexpected loss. Japan’s Mitsubishi UFJ Financial Group fell 1.8 percent and Canon slumped 3.1 percent after the yen strengthened against the euro cutting into its profits.

Thursday, Motorola increased 3.5 percent after reporting an unexpected profit, and Starwood rose 5.7 percent. Pre-phone maker Palm Inc. surged 26 percent after Hewlett-Packard Co. agreed to buy the company for approximately $1.2 billion. Spanish bank Banco Santander gained 4 percent after profits beat analyst expectations, while the National Bank of Greece soared 18 percent on optimism Greek aid talks will conclude this week. Hong Kong’s Esprit Holdings slumped 4.7 percent and China Merchants Bank gained 1.5 percent in Shanghai after first-quarter profit rose 40 percent.

Friday had banking shares drop the as the Justice Department scrutinized Goldman Sachs, which lost 7.8 percent. Transocean and Halliburton Co. fell more than 12 percent as an oil spill in the Gulf of Mexico worsened. In Europe, Barclays slumped 6.4 percent after its investment banking unit’s profits lagged behind rivals. Asia’s Sumitomo Mitsui Financial Group rose 1.1 percent after returning to profit. Trading company Mitsubishi Corp rose 1.2 percent.

Binary Option Strategy for all your market news

About the Author

Binary Options as an investment type is in it’s infant stages. Somewhere between trading and online gaming, many are calling this new investment vehicle “financial gaming” and it’s definitely creating a stir in the markets. We’ve built this portal to offer traders and gamers alike the opportunity to learn and about binary options and to be part of a growing community.

BinaryOptionStrategy.com is the leading resource for traders who are looking for trading tools, market analysis, financial news and broker reviews. BinaryOptionsStrategy.com was created by traders for traders.