Weekly Market Review

by Raymond Chatlani

On Monday, Asian stockmarkets rose broadly on optimism that 2011 will deliver a blockbuster stock market performance on expectations of solid domestic economic growth and abundant liquidity, but volume was thin as many major markets like Japan, China and Australia were closed for public holidays. European and US stocks rose on stronger global manufacturing data

On Tuesday, Japanese stocks led Asian equities higher, climbing to their highest since May with investors betting the improving U.S. recovery may be reflected in jobs data later in the week. European stocks rose on reflections of improved sentiment on the prospects for the global economy. US indices ended mixed and flat as financials rose and commodities fell.

On Wednesday, Asian markets fell after commodities sold off on profit taking. European shares fell hit by a retreat in commodity shares ahead of the release of U.S. private sector employment expected to highlight the pace of recovery in the jobs market. US markets rose as private companies added 297,000 jobs last month. That was far above the 100,000 economists expected.

On Thursday, the Nikkei rallied as investors snapped up shares of Japanese exporters after the dollar hit two-week highs against the yen, but markets elsewhere in Asia were more subdued ahead of the influential U.S. non-farm payrolls report which is due on Friday. Other Asian markets closed mixed after alternating between positive and negative territory. European markets rose on growing confidence the economic recovery was on a stronger footing after U.S. employment figures pointed to a pick-up in the labour market. US eased on softer retail sales data before a U.S. employment report expected to give direction to markets. US stockmarkets were flat after unemployment claims rose slightly over the previous month.

On Friday, Asian markets were lower as traders waited for the US employment report later in the day. European and US stocks fell on disappointing US payrolls added which were below expectations although there was a significant decline in the unemployment rate from 9.7% to 9.4%.

Last week, emerging markets were flat and commodities fell on profit taking. US indices rose on improved economic metrics like ramped-up consumer spending, improved factory orders from businesses, better consumer confidence although employment data disappointed on Friday as investors expected more jobs to be created. This week, companies start reporting and these results will largely move the markets in the weeks to come.