Weekly Market Summary

BY RAYMOND CHATLANI

On Monday, Asian stock markets kicked off a new week of trading in good spirits, encouraged by an improvement in U.S. indicators that provided respite from worries about the durability of the economic recovery. Last Friday's report of an increase in US corporate spending lifted Asian indices. European and US markets edged lower as investors pocketed profits.

On Tuesday, Asian equities were lower on lingering concerns about eurozone debt. European markets fell slightly as traders are again weary of the health of Europe's financial markets and how countries there will be able to cope with mounting debt. US markets rose on reports that house prices have risen for five straight months and merger and takeover activity although consumer confidence dropped to its lowest level since February.

On Wednesday, Asian markets mostly rose on speculation that the Fed and Bank of Japan look to pump more funds into markets via bond purchases and other measures to help their struggling economies. European shares fell on massive street protests against austerity measures renewed worries about the region's finances with banks leading the downfall. Gold hit a new high of $1,313 an ounce at one point. US indices were down modestly as concerns over Europe's debt problems dampened sentiment.

On Thursday, Asian markets were mostly down except for China which rocketed over 1.5 percent on speculation government measures to tame real- estate prices will end policy tightening earlier and prevent asset bubbles from hurting the economy. European markets fell on concerns over Ireland and Spain's debt problems as Ireland’s government is preparing to take majority control of Allied Irish Banks Plc and pump extra cash into Anglo Irish Bank Corp. to draw a line under its financial crisis and as Moody's lowered Spain's credit rating from Aaa to Aa1. European markets later recovered in the afternoon and went into positive territory after economic reports in the USA topped expectations but finally closed mixed. American stocks rose on news that second quarter GDP grew 1.7% which was higher than estimated a month ago and that jobless claims figures were lower than expected but closed in negative territory at the end as investors booked profits for the month.

Today, most Asian stock markets rose although Hong Kong and China were closed for public holidays on stronger growth in Chinese manufacturing in September which suggests the world's No. 2 economy isn't slowing as sharply as feared. European markets fell except for the Uk on fears of a possible debt crisis on austerity protests. Gold hit a new high today at 1,318 an ounce driven by the US Dollar's weakness against the Euro. US stocks were flat as American personal spending topped estimates and data showed the manufacturing sector grew at a slower pace in September.

Another good week for equities and commodities. Data from the USA and China are showing slow growth in the US economy and high growth in Asia. EU markets were the exception this week and fell on debt worries stoked by the problems in Ireland and the downgrade of Spanish debt.

Gold new highs this week signifies that the market is looking ahead and probably sees inflation coming. If the market's view is correct, then our portfolios will continue to perform as the US Dollar continues its fall and emerging market's assets continue to appreciate.