Stocks next week face an uncertain time as investors try to focus on the basics of the economy and earnings while keeping a wary eye on developments in Libya and the Middle East. After an easing of tensions on Friday allowed for some profit-taking in oil and gains in stocks, the markets will be hoping that the situation in Libya can be resolved sooner rather than later.
Moamer Khadafi, however, the Libyan leader of 41 years, pledged again Friday to fight to the end, stoking fears of a destabilising civil war in a key oil producer. The longer the crisis drags on, the more concerned the markets will get. At the same time, investors will be digesting the results of Ireland's general election - which the opposition is widely expected to win - and closely scrutinising the new government's make-up and stated intention of renegotiating last year's massive bailout package.
On the corporate news front, the major banks will be in focus. 2010 results are due from global giant HSBC on Tuesday, with emerging markets lender Standard Chartered and Ireland's nationalised Allied Irish Banks reporting on Wednesday.
Among other results, Pearson, the owner of the Financial Times, reports Tuesday, followed by insurer Aviva on Thursday and WPP on Friday.
For the week, the FTSE 100 index of leading shares slipped 1.34 percent but the positive bounce on Friday allowed it to finish just above the key 6,000-point level at 6,001.20 points.
GFT analyst David Morrison said investors were bargain-hunting Friday after losses earlier in the week, "but there's still plenty to worry about, with the possibility of civil unrest spreading further to the Middle East. "Any further rise in the oil price will weigh on equities, but bear in mind that at current levels it is already a serious drag on growth," Morrison added.
Comments
Comments are closed for this article.