November 20, 2009
Global markets: Weekly overview
Global markets experienced a rather volatile week. Monday saw a rally on the back of resumed growth in the crude price, but performances diverged thereafter: the US traded sideways, Russia stayed mainly in positive territory on lingering support from the oil price, and Asia posted four days of consecutive declines.
Having jumped at the beginning of the week on reports that retail sales rebounded 1.4% in October after slumping the most in nine months in September, the US market then showed weakness. Profit taking, poor financial results in the technology sector (including from Autodesk, Salesforce and Dell) and concern that the rally had outpaced the prospects for economic growth dampened sentiment among investors. As a result, regional indexes closed the week flat to slightly lower.
Markets in Asia closed the week down from 0.5% to more than 2%, remaining in negative territory starting from Tuesday. Plans by Japanese companies to issue shares had a negative effect on the market. Poor results from US technology companies put pressure on Asian computer-related stocks as well.
Russian stocks surged the most in a week on Monday, outperforming major equity markets on the back of an upswing in oil and metals prices. Stocks climbed further on Wednesday, reaching a 15-month high after WTI surpassed $80/bbl. The more than $2/bbl drop in the oil price precipitated the biggest decline in the Russian market in two weeks, but it remained in positive territory w-o-w, adding more than 1%.
Source: Troika Dialog