December 18, 2009
Global markets: Weekly overview
Global markets saw a very volatile week: there was no unitary trend on major markets, the main global indexes closing the week from 1% down to more than 5% up.
The US equity market retreated sharply on speculation that economic recovery may prompt the Federal Reserve to scale back stimulus measures. Citigroup sold stock at a steep discount as part of its plan to repay government bonds, which sent the markets even lower. As a result, the US indexes closed the week down 0.5–1.0%.
European and Asian markets moved in opposite directions. European stock exchanges ignored the pessimistic mood on Wall Street to post a second week of gains, rising on the improved outlook for the European economy. By contrast, markets in Asia fell, closing the week from flat to more than 3% down.
A year-end rally began on the Russian equity market. A recovery in the crude price (WTI added more than 5% w-o-w, bouncing from $70/bbl to above $73/bbl) supported energy producers, which led the market higher. Gazprom and Rosneft both advanced more than 8% w-o-w. Transneft prefs surged more than 16% ahead of a Federal Tariff Service decision on the company’s tariffs for 2010 expected on Tuesday, December 22. The market as a whole climbed 4–5%.
Source: Troika Dialog