City Comment: Sue Dodd_3
28 March 2012
The financial markets have been extremely volatile in recent weeks, well reflecting the party-pooping news being relayed by economists and central bankers. However, following several consecutive days of FTSE 100 decline described by Kean Marden in his Recruiter column two weeks ago, there eventually followed a partial recovery in global stock markets, driven upwards by hopes for the ‘Merkozy’ political alliance aimed at stabilising the Eurozone.
14 December 2011
The financial markets have been extremely volatile in recent weeks, well reflecting the party-pooping news being relayed by economists and central bankers. However, following several consecutive days of FTSE 100 decline described by Kean Marden in his Recruiter column two weeks ago, there eventually followed a partial recovery in global stock markets, driven upwards by hopes for the ‘Merkozy’ political alliance aimed at stabilising the Eurozone. The nature of this ‘new order’ should become a little clearer at the ongoing EU summit currently underway. If it turns into another talking shop then markets will once again reverse but the initial proposal does suggest longterm changes, which will bring close fiscal union and strict deficit rules. It cannot, however, deny the inevitable growth challenges facing several Euro economies and this, in turn, affects the rest of Europe, including the UK. The recent statement by Sir Mervyn King, governor of the Bank of England, was especially downbeat, amidst an already worsening outlook, and it is impossible to ignore not just what he was saying but who said it and why. Another round of QE (quantitative easing) is sanctioned along with ‘credit easing’ to help direct much needed funds to SMEs. Will these measures work? If the Eurozone rescue package convinces markets that the currency is here to stay and sovereign debt can be reduced then the banking paralysis will slowly begin to recede. But were the likelihood of the euro fracturing to become nearer to reality, then central banks would probably be swimming against the tide. After sharp falls in the FTSE, some ground has now been regained but markets remain fragile and, as the economy becomes increasingly challenging to predict, so too does corporate profitability. Market sentiment has rarely been more delicate or more fickle. “After sharp falls in the FTSE 100, some ground has now been regained but but markets remain fragile and, as the economy becomes increasingly challenging to predict, so too does corporate profitability. Market sentiment has rarely been more delicate or fickle”
Recruiters have also seen shares decline in the past month, amidst a slowdown in Q3 results, but a few have bucked the trend — Nakama, RTC, Matchtech, Prime People and Parity all managed net gains generally backed by positive trading announcements, although some have helped underpin their stock by buying their own shares. Conversely Healthcare Locums, already pretty close to rock bottom, saw the reversal of a brief spike in its shares with the announcement that the Accountancy and Actuarial Discipline Board has launched an investigation into the conduct of accountants and auditors in connection with HCL up to June 2010. More latterly, a slowing global economy led to a gentle profit warning from Michael Page, now anticipating pre-tax profits marginally below the bottom end of analysts’ forecasts. The shares dropped around 50p on the day, although they have since partly recovered. It seems unlikely they will be the last to dip.
The financial markets have been extremely volatile in recent weeks, well reflecting the party-pooping news being relayed by economists and central bankers. However, following several consecutive days of FTSE 100 decline described by Kean Marden in his Recruiter column two weeks ago, there eventually followed a partial recovery in global stock markets, driven upwards by hopes for the ‘Merkozy’ political alliance aimed at stabilising the Eurozone. The nature of this ‘new order’ should become a little clearer at the ongoing EU summit currently underway. If it turns into another talking shop then markets will once again reverse but the initial proposal does suggest longterm changes, which will bring close fiscal union and strict deficit rules. It cannot, however, deny the inevitable growth challenges facing several Euro economies and this, in turn, affects the rest of Europe, including the UK. The recent statement by Sir Mervyn King, governor of the Bank of England, was especially downbeat, amidst an already worsening outlook, and it is impossible to ignore not just what he was saying but who said it and why. Another round of QE (quantitative easing) is sanctioned along with ‘credit easing’ to help direct much needed funds to SMEs. Will these measures work? If the Eurozone rescue package convinces markets that the currency is here to stay and sovereign debt can be reduced then the banking paralysis will slowly begin to recede. But were the likelihood of the euro fracturing to become nearer to reality, then central banks would probably be swimming against the tide. After sharp falls in the FTSE, some ground has now been regained but markets remain fragile and, as the economy becomes increasingly challenging to predict, so too does corporate profitability. Market sentiment has rarely been more delicate or more fickle. “After sharp falls in the FTSE 100, some ground has now been regained but but markets remain fragile and, as the economy becomes increasingly challenging to predict, so too does corporate profitability. Market sentiment has rarely been more delicate or fickle”
Recruiters have also seen shares decline in the past month, amidst a slowdown in Q3 results, but a few have bucked the trend — Nakama, RTC, Matchtech, Prime People and Parity all managed net gains generally backed by positive trading announcements, although some have helped underpin their stock by buying their own shares. Conversely Healthcare Locums, already pretty close to rock bottom, saw the reversal of a brief spike in its shares with the announcement that the Accountancy and Actuarial Discipline Board has launched an investigation into the conduct of accountants and auditors in connection with HCL up to June 2010. More latterly, a slowing global economy led to a gentle profit warning from Michael Page, now anticipating pre-tax profits marginally below the bottom end of analysts’ forecasts. The shares dropped around 50p on the day, although they have since partly recovered. It seems unlikely they will be the last to dip.
