Weekly Market Summary

By Raymond Chatlani

On Monday, Asian stocks touched one-month highs after the latest U.S. jobs data pacified investors for now as they had been worried that a second recession in the world's biggest economy was high. European equities followed Asia higher. US financial markets were closed for their Labour Day holiday.

Asian markets closed mostly lower on Tuesday on profit taking after 4 days of gains. The Euro and European stocks fell on renewed concerns about the banking sector. US indices fell by over one percent on these concerns.

World stocks recovered on Wednesday to close higher as concerns receded as to the health of European banks. Also the Portugese Government's successful bond issue was well perceived helped the markets. US President Obama unveiling of a $50 Billion investment plan in transport infrastructure also helped stocks.

On Thursday, Asian markets rose again with the exception of China which was dragged down by banks and property companies share prices. European and US indices rallied as the US Labour Department said first-time claims for unemployment benefits fell to the lowest level in two months, adding to signs that employers aren't resorting to staff cuts as economic growth slows. The U.S. trade deficit narrowed a greater-than-expected 14 percent in July to $42.8 billion, which also boosted confidence.

Today, most Asian stocks gained after Japan said its economy grew more than estimated and on yesterday's better U.S. jobs and trade figures which eased fears that the world's largest economy might slip back into recession. Reports that China's imports during August increased by 35.2% which was more than the expected forecast of 26.1% and that this reduced China's August's trade surplus to $20 Billion from a forecast of $27.1 Billion suggest that the Chinese economy will not slowdown and lead the global economy.

It is looking increasingly unlikely that we are going to have a global recession or a double dip recession in the USA, but it is still early to be certain. The main news this week was that the labour market in the US is improving though hiring is still weak. Thus week we have started to invest a little bit into emerging markets for a few clients with the aim of increasing exposure further should economic data continue to improve in the coming weeks.