IG Index regional seminars and daily Market Update
Our regional seminar programme continues in May with events scheduled for Glasgow, Edinburgh and Manchester. These are held in the evening, with an agenda designed to appeal to both existing clients and newcomers. To view all our seminars, please visit the Education section.
You can also access daily updates from our website to keep in touch with events driving markets both in the UK and around the world. In addition to written commentary, we have recently launched our video updates which look at key events so far in the UK, and what to watch out for when US markets open. All of these can be accessed from our Market Update section.
FTSE 100 stages impressive recovery
The first quarter of 2008 was the FTSE 100's worst start to a year since its inception back in 1984. So it probably came as a relief and something of a surprise to see relatively strong gains in April.
Towards the end of the month, the blue-chip index had pushed back up above the 6100 mark, managing to reach levels not seen since early January. Throughout April the theme for the market seemed to be to 'buy the dips', with any weakness ultimately proving to be short-lived and the market bouncing back sharply.
This has left many world stock markets poised below what some feel are key barriers – levels that have, in the past, stopped any further recovery. Going into May, traders and investors alike will be watching to see if the FTSE 100 can continue to build on its April gains, surge further past 6100 and claw back more of the losses suffered since the beginning of the year.
(IG Index price data: compiled 30 April 2008)
Crude oil pushes out to reach fresh all-time highs
As recently as our February Monthly Review crude oil popped up after it broke through the $100 per barrel mark for the first time. The last two months have seen further all-time highs, with the latest one just shy of $119 per barrel for the June US light crude contract.
This month OPEC warned that oil prices could rise to as much as $200 per barrel, citing the falling value of the US dollar as a catalyst. Of course, OPEC is an oil-producing cartel, so for the more cynical ones out there this sort of statement is akin to an estate agent saying that house prices will go up forever – but the trend of oil for the past few years is plain for all to see.
Over the past couple of months, the $100 zone has proven to be something of a floor for the price. Many chart-based traders would probably only consider that a move below here, at the very least, might suggest that the market is running out of steam.
(IG Index price data: compiled 30 April 2008)
Dollar slips to fresh all-time low against the euro
US dollar weakness, particularly against the euro, is another trend that has been clear for some time. The EUR/USD hit a fresh high in April, albeit briefly, with the currency pair poking above the 1.6000 level for the first time.
The continued downbeat outlook for the US economy, coupled with the expectation of lower US interest rates, has conspired to make other currencies more attractive to investors and traders.
The 1.6000 area for EUR/USD has been lost in recent days but the past two months have seen support for the currency pair in the 1.5300 area. Analysts will be closely watching to see if buyers re-emerge to set up another possible attempt on the previous high.
(IG Index price data: compiled 30 April 2008)
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