Weekly Market Summary

by Raymond Chatlani

On Monday, Asian stockmarkets mostly rose as growth hopes made their presence felt but China and Hong kong fell on inflation fears of further Chinese tightening. European bourses rose on data which showed eurozone growth accelerating . US stocks rose on news of takeovers.

On Tuesday, Asian stocks rose on optimism that companies will report strong earnings. European markets fell as confidence in Britain was shaken by an unexpected drop in fourth-quarter UK growth figures and with Spanish banks down on concerns new capital requirement rules may not be tough enough. US stockmarkets ended flat overcoming most of the session's losses as bargain hunters bought equities late in the day.

On Wednesday, Asian stockmarkets rose buoyed by strong corporate earnings. European indices rose buoyed by expectations of a firm start on Wall Street. US markets rose as investors shrugged off weak corporate earnings and focused on President Barack Obama's call to lower taxes on businesses. The market also got a boost after U.S. Federal Reserve policymakers, at the end of a two-day meeting, said they would press on with a plan to buy $600 billion in government debt to further stimulate the economy.

On Thursday, Asian shares extended their upbeat run for the fourth day after the Feds statement last night. European markets rose modestly on corporate earnings. US stockmarkets rose as orders for core capital equipment goods rose 1.4% in December though orders for US durable goods declined by 2.5% and US jobless claims rose more than expected.

This morning, Asian stockmarkets were lower for the first time this week with commodity shares pulled down by a drop in oil and gold prices. The Japanese market was especially hurt by S & P's downgrade of Japan's credit rating and disappointing US economic data. European stocks were mixed on US GDP figures. US markets fell although the US economy grew 3.2% on an annualised rate in the fourth quarter due to a big gain in consumer spending and strong exports. This economic growth is considered too slow to ease high unemployment.

This week world markets rose on strong corporate earnings and an improving US economy. Inflation worries still persists in emerging markets, so commodities have been mixed this week. Precious metals and oil fell, base metals were neutral and grains gained slightly.