Market Report, 4th Jan 2010

Market Indices Review: 4th January 2010


What a remarkable year 2009 turned out to be for the markets.

In early March, the FTSE 100 plummeted to its lowest level during this economic downturn, briefly dipping below 3,500 during trading having opened 2009 at around 4,434. At that point the index had lost a further 21% since the start of the year.  However, from that point on the market began to rally thanks largely to sectors such as the miners. Having had a closing low of 3,512 on 3 March, the FTSE 100 then proceeded to post a gain of 54.1% for the remainder of the year to close 2009 out at 5,412.88. Over the full year this equated to a rise of 22.1%.

In the US the story was much the same. The market had begun 2009 at 8,776.39 and dipped to a closing day low of 6,547.05 in early March, a further loss of 25.4%. And, like the FTSE100, from that point on, the market turned and began its long haul back to finally close the year out at 10,428.05 a rise of 18.8% over the full year and 59.3% from its low in March.

The stories continued around the world with two of the other key indices over in Asia showing significant yearly gains.

The Nikkei 225 had begun 2009 at 8,859.56 and proceeded to fall as low as 7,054.98 in early March, a loss of just over 20%. Yet like the markets of the UK and the US, it then started to rally to eventually close the year out at 10,546.44, a rise of 19% over the full year and 49.5% from its March low.

If the three index recoveries above looked impressive, then the Hang Seng managed to trump them all. Having opened 2009 at 14,429.11, it proceeded to lose a further 20% to fall to around 11,591.  Like the other key indices, early March proved to be the bottom and from that point on the index rallied to eventually close 2009 out at 21,872.5. In terms of performance, the equated to a rise of 51.6% over the full year and 88.7% from its March low.

Given the strength of the recoveries in all of the four key indices in 2009, it is hard to see gains of such magnitude continuing throughout 2010.

The Week Ahead: 4th –  10th January 2010

In terms of companies reporting this week, the market is relatively quiet, however, Marks & Spencer and Next, two of the High Street’s biggest retailers will bring trading statements to the market.

These will be seen as vitally important not only for the market but for the broader UK economy as a whole. Analysts and economists will be looking very closely at foot fall numbers and spending patterns as they will give us the first indication as to how hard hitting the downturn has been on our festive spending patterns. In addition, they will also give an indication as to whether the consumer was looking to take advantage of the VAT reduction before the increase back to 17.5%. 



This data is provided by Andy Parsons, Advice team manager at The Share Centre. This is not intended to constitute an offer or agreement to buy or sell investments.




 

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2010-01-07 09:41:13 © Moneyextra.com