January 15, 2010
Global markets: Weekly overview
The week was rather volatile; the negative news flow outweighing the positive.
The U.S. equity market advanced for the most part, regional indexes closing the week from flat to slightly up. News flow was mixed: Alcoa’s 3Q09 results came in worse than expected, whereas Intel released earnings and sales figures that beat analyst estimates; the trade deficit widened and jobless claims increased. WTI declined from $82/bbl at the beginning of the week to below $80/bbl by Friday on the back of unfavorable news from the U.S. economy.
Asian markets retreated in the beginning of the week as China allowed its benchmark money rate to rise and its bank reserves requirements were increased. Haven rebounded on Thursday on the US tech stock rally after Intel results, Asian markets dropped on Friday, finishing the week down 0.3-3.0%.
Russian equities caught up with international markets on Monday, when it resumed trading after the long New Year holidays. Although market spent the rest of the week in positive territory, gains were not as impressive as on Monday. The RTS Index closed the week up 8%, while MICEX gained 6%. Metals producers led the way, with Evraz Group ADRs surging 24%, Severstal jumping 20% and Raspadskaya Coal gaining 19.5%.