December 11, 2009
Global markets: Weekly overview
Late recoveries saw most global markets finish the week flat to lower. The week opened firm but credit concerns following a downgrade of Greece’s credit rating and a cut in Spain’s outlook saw mid-week sell-offs in equities. Dubai re-entered market focus as Nakheel’s $3.2 billion bond comes due December 14. Oil had a horrible week. On Monday it was challenging $76/bbl to the upside, yet by Thursday it was testing $70/bbl to the downside. Inventories for crude oil were down government data showed, but the focus was rising inventories of distillates. Friday trading saw oil at about $71/bbl, which would be largest weekly loss in 11 weeks.
US stocks were little changed going into Friday trading after a mid-week swoon on global credit worries. Data releases were generally benign. Volumes continued to light to modearte and technology saw relative strength. Technology stocks are up more than double what broader averages are year to date. US futures pointed to a positive open in Friday trading.
Asian markets were mixed. Japan ended the week flat after some selling associated with the global credit concerns but also after yen strength led to weakness among exporters. A weakening yen helped stocks recover as did China’s strong industrial production numbers Thursday. Those data also helped other Asian markets offset earlier losses spurred by talk of measures to cool rapidly rising asset classes. Shanghai finished the week down 2%, Hong Kong lost 2.6% while Korea gained 1.6% and Taiwan added 1.9%.
Russian stocks also felt the credit-concerns pressure but ruble movements and declining oil prices played their part as well. The market slid steadily during the week on diminishing volumes before ticking up for about a 2.5–3.5% loss. Earnings annoucements during the week were in-line.
Source: Troika Dialog