Markets: The week that was (21/1-27/1/2012)
The FTSE 100 (UKX) began the week at 5728.55.
There was an optimistic start to the week for UK investors as the FTSE 100 opened firmly in the black, buoyed by the strong finish Wall Street enjoyed in its last session and overnight gains in Hong Kong as traders welcomed the Year of the Dragon.
Commodities ruled to roost throughout the day, starting with the news that Range Resources (RRL) and its joint venture partner, Red Emperor Resources (RMP), have started site construction for the spudding of a second exploration well in Georgia.
Meanwhile, Cairn Energy (CNE) announced a new partnership with Norway's Statoil ASA to work on the Pitu block in the Baffin Bay Basin, west of Greenland. Cairn said it will retain operatorship of the exploration (with a 56.875% interest in the block) and Statoil will operate any future development.
And there was an update from Nighthawk Energy (HAWK) which said its wholly-owned subsidiary, Nighthawk Production, has completed the acquisition of a further 25% working interest in, and assumed the operatorship of, the Jolly Ranch Project.
Monday's close: 
54 points at 5782.56
By Tuesday, the benchmark index showed no signs of adding to the gains it made after its six-month closing high in the previous session.
The prospect of failing Greek debt negotiations dampened enthusiasm. Eurozone finance ministers rejected an offer made by private bondholders on Monday evening to help restructure Greece's debts, sending negotiators back to the drawing board.
Investors sent shares in Chemring Group (CHG) tumbling as it published its preliminary results for the year ended 31 October and warned that 2012 would "not be any easier" than 2011.
In commodities deals, investment company Viridas (VIR) saw its shares jump more than 12% on Tuesday after it announced that it has sold 592,666,667 ordinary shares in AIM favourite Leed Petroleum (LDP) at an average price per share of 0.48p or for an aggregate consideration of £2,869,200.
Tuesday's close: 
30 points at 5751.90
The picture looked brighter midweek as the FTSE was boosted by some upbeat trading in Asia and on the Nasdaq after solid results from Apple.
There was some less-than-glowing news on the economic front on Wednesday morning as latest figures revaled that the UK economy has again moved worryingly close to the brink of recession as figures for the last quarter of 2011 came in below expectations.
The market had been expecting GDP to shrink by 0.1% quarter-on-quarter however preliminary figures have indicated a contraction of 0.2%, fuelling an equity sell-off in the large caps.
In corporate news, industrial engineer Weir (WEIR) was no doubt hoping for a more positive day for its stock after it announced the acquisition of US oil and gas pump valve maker Novatech for $176 million (£113 million) in cash.
Novatech manufactures a variety of proprietary valves and valve seats for high-pressure applications such as farce, cement and mud pumps used in unconventional upstream oil and gas operations.
Wednesday's close: 28 points at 5723.00
Miners boosted the FTSE on Thursday after trading updates from Kazakhmys (KAZ) and Anglo American (AAL).
Shares in copper producer Kazakhmys rose more than 2% as it announced that it had produced 310,000 tonnes of copper cathode in 2011, "in line with guidance", with a decline in copper grades partly offset by increases in ore volumes.
There was a gloomier picture for shares in Ariana Resources (AAU) lost more than a tenth of their value after revealing delays to its Red Rabbit Gold Project in western Turkey.
However, both oil and gold rallied strongly on Thursday after the Federal Open Market Committee, the rate-setting body of the US Federal Reserve Board, said it expected low interest rates to be kept in place until late 2014 - extending previous indications that rates would be static up to the second quarter of 2013.
The yellow metal has gained further appeal as a safe-haven alternative to US government debt, as global investors looking to reposition themselves away from market volatility continue to shun currencies as a stable store of value.
Away from commodities, shares in easyJet (EZJ) moved higher as it confirmed that it expected losses in the first half of this year to be between £140 million and £160 million, compared to the £153 million loss reported in the first half of last year.
However, it stressed that this depended on "no significant disruption in the second quarter", allowing it to recover "most of the £100 million increase in [the] first-half fuel bill".
Thursday's close: 72 points at 5795.20
Worries about Greek debt held UK markets back at the end of the week. Greece and its private creditors said that talks would continue with the aim of sealing an agreement within a few days. Greece's creditors are demanding that the European Central Bank contributes to a deal to put the country's messy finances back on track.
In corporate news, BP (BP.) is to pay for some, but not all, of oil rig owner Transocean's liabilities for the 2010 oil spill in the Gulf of Mexico, a US judge has ruled.
"Under the decision Transocean is, at a minimum, financially responsible for any punitive damages, fines and penalties flowing from its own conduct. Transocean cannot avoid its responsibility for this accident," the ruling stated.
Since the spill, BP has paid more than $7.8 billion (c £4.9 billion) in claims, advances and other payments to individuals, businesses and governments.
Elsewhere, Range Resources (RRL) has ramped up its reserves production drilling programme on the Morne Diablo concession in onshore Trinidad.
Initial production testing on the QUN118ST well saw the well producing at a rate of up to 102 barrels of oil per day (bopd) and it has stabilised at approximately 84 bopd.
One of the biggest stories of the day was in the banking sector, where after weeks of speculation, Royal Bank of Scotland (RBS) confirmed on Thursday evening that its chief executive officer, Stephen Hester, would receive around £963,000 from a bonus of 3.6 million shares.
With the government holding an 83% stake in the bank, controversy has surrounded the payout during a time of increased austerity and it remains to be seen whether the government will block the move.
Friday's close 61 points at 5733.45, a loss of 4.9 points over the week.
US markets
Markets across the Pond opened the week largely hopeful for a deal between Greece and its creditors after talks reached a stalemate over the weekend.
But the optimism was short-lived as stocks ended almost flat on Monday with investors drawing breath following the recent rallies and waited to see what would happen with bellwethers such as Apple and the next decision on interest rates.
The downward trend continued on Tuesday as eurozone finance ministers deemed demands by private creditors for a 4% coupon for any new bonds as too high.
US stocks closed with losses for two of three main indexes as concerns about Greek debt dampened investors' spirits and the latest slew of earnings failed to excite.
By the middle of the week, feelings were mixed as investors digested corporate news. But the mood brightened after the Federal Reserve promising to keep interest rates near zero "at least" until late 2014 - longer than previously expected.
The rally picked up again on Thursday as latest data showed US jobless claims remained below the 400,000 mark, while durable goods orders advanced 3% in December.
However, sales of new US homes unexpectedly declined in December for the first time in four months, capping the slowest year on record for builders.
At the end of the week, the picture remained mixed after US GDP data disappointed.
The US economy grew at an annualized rate of 2.8% in the fourth quarter of 2011, less than analysts' expectations of 3%.
At a glance...
Asian markets
Nikkei 225: 8841 ( 76 points on the week)
Hang Seng: 20502 (closed at start of the week)
Shanghai Composite: closed
Commodities
Gold: $1,771.52 ( $102.64)
WTI crude oil: $99.70 ( $2)
Currencies
GBP/USD: 1.5683 ( 0.0157)
GBP/EUR: 1.1983 ( 0.0023)
EUR/USD: 1.3088 ( 0.0159)
