Markets: The week that was (06-10/02/2012)

The FTSE 100 (UKX) opened at 5901.07.

There was a flat start to the week as investors are reluctant to get their hopes up over a resolution for Greece which has until today to decide whether to accept a new bailout deal.

The corporate day began with news from Vodafone (VOD), which halted plans to tie up its Greek business with rival company Wind Hellas amid regulatory concerns.

On the commodities front, Randgold Resources (RRS)’ profits soared to record levels as production levels increased across the board.

Profit for 2011 was up 259% to £275million, and on the back of these impressive gains the board has proposed a doubling in annual dividend for 2011.

Meanwhile, Red Rock Resources (RRR) said it was selling Anglo Pacifica (APF) 50% stake in its 1.5% gross production royalty over any production from the Mount Ida iron ore project in Western Australia.

Monday’s close: 8.87 points to 5892.20.

The FTSE was unsteady in initial trading on Tuesday in the absence of any news from Greece and echoing stutters on Wall Street and in Asia overnight.

Commodities dominated the news as Glencore International (GLEN) and Xstrata (XTA) revealed the terms of their merger of equals, the spotlight was stolen by the rebellion of major shareholders, who are unhappy with the terms.

Meanwhile BP (BP.) announced a 14% rise in its quarterly dividend as it published its 2011 final results. Fourth-quarter underlying replacement cost profit came in at $5 billion (£3.16 billion), beating Royal Dutch Shell (RDSB)’s $4.8 billion - the first time in a year.

Oil and gas news came thick and fast on Tuesday with Solo Oil (SOLO), Mediterranean Oil and Gas (MOG), Leni Gas and Oil (LGO) and LSE:NEW:New World Oil and Gas all updating investors.

The FTSE was mired in the red throughout much of the session, only lifting towards the close amid the deafening silence from Greece.

Tuesday’s close: 1.94 points at 5890.26.

Trading began on the front foot  midweek fuelled by hopes for a resolution in Greece and echoing a glowing finish for the Dow Jones and gains in Asia overnight.

Shares in Rio Tinto (RIO) were up as the company announced it was to invest a further £2.1 billion in Western Australia to expand its iron ore operations.

There was a contrasting picture at retailer Supergroup (SPGH), though, as its shares  plunged almost 20% as it warned that pre-tax profits would be "towards the lower end of the range of market expectations".

Wednesday’s close: 14.33 points at 5875.93.

Optimism that Greece was finally getting its debts under control pushed the FTSE higher on Thursday.

In company news, Nighthawk Energy (HAWK) moved to reassure investors as it announced that it would commence a comprehensive work-over programme focused on 15 wells on the Jolly Ranch Project in the US.

Meanwhile, performance in the last quarter was weaker than expected at Vodafone (VOD). The world's largest mobile phone operator said group service revenues grew by 0.9% on the year in the final three months of 2011.

The Bank of England revealed plans to inject £50 billion in additional quantitative easing into the economy to continue to shore it up against the risk of another recession. The announcement came as the Bank kept the UK base rate on hold at a record-low 0.5%.

The FTSE held onto gains throughout Thursday, buoyed by action from the Bank of England and the light at the end of the tunnel on the Greek bail-out as the government there agreed cuts of €300 million (£252 million).

Thursday’s close: 19.54 points at 5895.47.

The FTSE gave up most of its previous day's gains as eurozone finance ministers made a series of demands for Greece to get a €130 billion (£110 billion) bail-out.

The ministers said the Greek parliament would have to approve the terms of a package of cuts and reforms agreed with the European Union and the International Monetary Fund. Athens must also find a further €325 million in budget cuts by Wednesday, when eurozone ministers meet again.

BP (BP.) has won a court order to prevent the inclusion of several potentially damaging e-mails, relating to previous accidents, in the forthcoming trial to determine responsibility for the 2010 Gulf of Mexico oil spill.

The big news of the day was from LSE:BARC:Barclays which reported profits down and bonuses slashed as it warned that it may not be able to deliver its target of a 13% return on equity by 2013.

Friday’s close: 43.08 points at 5852.39, a weekly loss of 48.68 points.

US markets....

US markets fell lower at the open on Monday after the latest bailout deadline for resolution to the Greek debt talks was not met.

The lack of agreement brought the prospect of a disorderly default for the Greek government back onto the cards - leading investors in US markets to take profits.

Things were no better by Tuesday’s open although optimism grew in time to deliver gains by the close.

The positivity continued midweek with more gains and markets remained in the black throughout Thursday.

By Friday the rally was over and the sixth week of gains for the S&P 500 was looking unlikely amid investor uncertainty over the Greek bail-out deal.

But the main cause for concern was domestic data as the first reading from the February's Michigan consumer confidence index failed to live up to expectations, dropping to 72.5 from 75.

At a glance...

Asian markets

Nikkei 225: 8947 (18 points over the week)

Hang Seng: 20784 ( 75 points)

Shanghai Composite: 2353 ( 22 points)

Commodities

Gold: $1,719.03 ( 99 cents)

WTI crude oil: $98.41 ( 1.16 cents)

Currencies

GBP/USD: 1.5752 ( 0.0015)

GBP/EUR: 1.1948  ( 0.0117)

EUR/USD: 1.3185 ( 0.0121)