by Ryamond Chatlani
On Monday, Asian stockmarkets slipped on increasing tensions in Libya. European shares fell on Libyan worries. US markets were shut for President's Day, a public holiday.
On Tuesday, oil prices rose and Asia stock prices fell sharply as markets watched the growing crisis in Libya, with investors turning to safe haven gold which in turn pushed up silver to its highest level in 31 years. European and US stockmarkets fell as protests in Libya intensified although US consumer confidence hit a 3 year high.
On Wednesday, Asian stockmarkets extended losses on Libya's turmoil. European markets fell further as Qadhafi vowed to stay in power. US indices fell on a spike in the oil price.
On Thursday, Asian stockmarkets fell again as Brent oil topped $113 on Libyan unrest. European shares were hit by growth worries as crude continued to rally. American markets were mixed as applications for unemployment benefits dropped by 22,000 last week to a seasonally adjusted 391,000 which was the lowest level in more than two and a half years and as investors feared that climbing oil prices could derail the economic recovery.
This morning, Asian markets rebounded for the first time this week as crude prices slipped on rumours that Gadhafi has been killed. European and US stocks rebounded strongly as consumer sentiment rose to its highest level in 3 years and as Saudi Arabia raised oil output by 8 percent to 9 million barrels of oil a day to compensate for Libya.
After dictatorships fell in Tunisia and Egypt, it is now Libya's turn. Libya is a different case and will continue to affect the markets as it exports 1.1 million barrels of oil a day and a civil war has broken out. That is why global stockmarkets have been decimated this week.
American data this week is showing that the US economy is recovering where we saw that claims for unemployment benefits dropped to their lowest level in the last two and a half years and that consumer sentiment has recovered. If the Libyan problem gets resolved, markets should bounce back. Although Saudi Arabia have turned on the taps to compensate for the loss of Libyan production, this will only be useful for a short while. Markets should continue to fall should the civil war in Libya be prolonged.
Monday, February 28, 2011
Monday, February 21, 2011
Weekly Market Summary
by Raymond Chatlani
On Monday, Asian stocks rose as investors greeted news of Egyptian President Hosni Mubarak's resignation with relief. After a firm start due to the resignation of Mubarak, European stockmarkets closed mixed. US markets were mixed as Obama revealed a $3.73 trillion budget.
On Tuesday, Asian stockmarkets closed mixed as China's inflation rate fell in January which cheered the market although traders remained wary about protesters destabilising other regions in the Middle East. European indices rose on good corporate results. US markets fell on surprisingly weak retail sales numbers.
On Wednesday, Asian stockmarkets were mostly higher although South Korea lost over one percent. European stock markets rose as investor sentiment was boosted by solid earnings news from US computer giant Dell and Dutch brewer Heineken. US stocks rose after estimate-beating results from technology bellwether Dell and a deal for Sanofi-Aventis to buy Genzyme for $20.1 billion in cash.
On Thursday, Asian stock markets rose, buoyed by strong corporate earnings and as the Federal Reserve expressed cautious optimism about the strength of the U.S. economic recovery. European markets opened flat but fell on US employment figures. US stocks fell after the government said first-time applications for unemployment benefits jumped more than expected last week.
This morning, Asian stockmarkets rose buoyed by gains on Wall Street though China and Indiia both fell. European shares fell on miners as China has raised bank reserve requirements by half a percentage point to a record level of 19.50%. US markets were flat at the time of writing.
This week global equities rose as the Egyptian problem was resolved as Mubarak resigned. Good corporate earnings and merger news also contributed to the rise. While commodities were volatile and remained almost the same, gold and silver appreciated as unrest in the Middle East spread this week to Bahrain and Libya.
While there are political risks in the Middle East and inflation fears in emerging markets, global equities are appreciating due to the high liquidity that has been pumped into the world's economic systems by Governments.
On Monday, Asian stocks rose as investors greeted news of Egyptian President Hosni Mubarak's resignation with relief. After a firm start due to the resignation of Mubarak, European stockmarkets closed mixed. US markets were mixed as Obama revealed a $3.73 trillion budget.
On Tuesday, Asian stockmarkets closed mixed as China's inflation rate fell in January which cheered the market although traders remained wary about protesters destabilising other regions in the Middle East. European indices rose on good corporate results. US markets fell on surprisingly weak retail sales numbers.
On Wednesday, Asian stockmarkets were mostly higher although South Korea lost over one percent. European stock markets rose as investor sentiment was boosted by solid earnings news from US computer giant Dell and Dutch brewer Heineken. US stocks rose after estimate-beating results from technology bellwether Dell and a deal for Sanofi-Aventis to buy Genzyme for $20.1 billion in cash.
On Thursday, Asian stock markets rose, buoyed by strong corporate earnings and as the Federal Reserve expressed cautious optimism about the strength of the U.S. economic recovery. European markets opened flat but fell on US employment figures. US stocks fell after the government said first-time applications for unemployment benefits jumped more than expected last week.
This morning, Asian stockmarkets rose buoyed by gains on Wall Street though China and Indiia both fell. European shares fell on miners as China has raised bank reserve requirements by half a percentage point to a record level of 19.50%. US markets were flat at the time of writing.
This week global equities rose as the Egyptian problem was resolved as Mubarak resigned. Good corporate earnings and merger news also contributed to the rise. While commodities were volatile and remained almost the same, gold and silver appreciated as unrest in the Middle East spread this week to Bahrain and Libya.
While there are political risks in the Middle East and inflation fears in emerging markets, global equities are appreciating due to the high liquidity that has been pumped into the world's economic systems by Governments.
Monday, February 14, 2011
Weekly Market Summary
by Raymond Chatlani
On Monday, Asian stocks rose led by South Korea and Japan as the U.S. job market showed further signs of recovery, highlighting a brighter outlook for its economy. European stockmarkets rose as miners and energy shares gained as copper hit a new record high. US markets rose on good earnings reports and takeover deals.
On Tuesday, Asian stockmarkets closed mixed where Japan, Australia, Hong Kong and Malaysia rose while the rest fell as China hiked interest rates by a quarter percent. European markets rose modestly on carmakers profits as both BMW and Audi both reported a double-digit increase in sales. US stocks rose as investors ignored the Chinese interest rate hike.
On Wednesday, Asian stockmarkets fell on China's interest rate hike. European indices fell as many european blue chips traded ex-dividend. US markets fell as commodity and material stocks were sold.
On Thursday, Asian markets fell although China rose higher. European and US stockmarkets fell as companies reported corporate profits below expectations although US jobless claims fell to a 31 month low.
On Friday, Asian stockmarkets fell as investors shunned risk on concerns about the pace of policy tightening within the region and escalating tensions in Egypt. European markets were slightly positive. US stocks were flat after embattled President Hosni Mubarak refused to step down, raising concerns that protests could intensify, and then it was reported that Mubarak left Cairo.
Markets rose early in the week but are giving up those gains on President Mubarak refusal to step down. Investors are concerned that the intensifying protests in Egypt may spread to other regions within the Middle East. This should continue to affect the markets next week.
On Monday, Asian stocks rose led by South Korea and Japan as the U.S. job market showed further signs of recovery, highlighting a brighter outlook for its economy. European stockmarkets rose as miners and energy shares gained as copper hit a new record high. US markets rose on good earnings reports and takeover deals.
On Tuesday, Asian stockmarkets closed mixed where Japan, Australia, Hong Kong and Malaysia rose while the rest fell as China hiked interest rates by a quarter percent. European markets rose modestly on carmakers profits as both BMW and Audi both reported a double-digit increase in sales. US stocks rose as investors ignored the Chinese interest rate hike.
On Wednesday, Asian stockmarkets fell on China's interest rate hike. European indices fell as many european blue chips traded ex-dividend. US markets fell as commodity and material stocks were sold.
On Thursday, Asian markets fell although China rose higher. European and US stockmarkets fell as companies reported corporate profits below expectations although US jobless claims fell to a 31 month low.
On Friday, Asian stockmarkets fell as investors shunned risk on concerns about the pace of policy tightening within the region and escalating tensions in Egypt. European markets were slightly positive. US stocks were flat after embattled President Hosni Mubarak refused to step down, raising concerns that protests could intensify, and then it was reported that Mubarak left Cairo.
Markets rose early in the week but are giving up those gains on President Mubarak refusal to step down. Investors are concerned that the intensifying protests in Egypt may spread to other regions within the Middle East. This should continue to affect the markets next week.
Monday, February 7, 2011
Weekly Market Summary
by Raymond Chatlani
On Monday, Asian stockmarkets fell broadly except for China and Taiwan following Friday's sharp drop on Wall Street as anti-government rioting in Egypt prompted investors to flee to less risky assets to ride out the turmoil. European markets slid on Egyptian unrest. US stocks gained on good earnings and merger activity and as fear on Egypt eased.
On Tuesday, Asian markets rose modestly led by shares in resource companies as strong US factory data offset fears that unrest in Egypt could spread elsewhere in the Middle East. European shares were boosted by upbeat euro zone manufacturing data while strong earnings from ARM and Infineon lifted technology firms. US stockmarkets rose on solid manufacturing data in Europe and the USA as the index of manufacturing activity in America rose to 60.8 which is the highest reading since 2004..
On Wednesday, Asian markets ended higher on solid Wall Street gains buoyed by encouraging earnings and manufacturing data. South Korea, China, Taiwan and Vietnam were closed for the Lunar New Year holidays. European stockmarkets were mixed after a very strong overnight performance on Wall Street, as investors shrugged off an S&P downgrade for Ireland and stubborn concerns over Egypt. US indices ended flat on good corporate earnings and escalation on the Egyptian situation where violent street clashes were reported.
On Thursday, Asian markets were mostly closed for the lunar holidays. While the Nikkei fell, Australia and India closed positive. European stockmarkets fell on weak earnings and intensified violence in Egypt. US stocks fell as investor worries about violent protests in Egypt outweighed relatively positive news on retail sales, but closed positive at the end of the session after Bernanke said that the Fed expects the economy to improve this year and inflation to remain low despite the jump in commodity prices.
This morning, Asian markets rose except for India. European stock markets closed modestly up on good corporate earnings. US stocks are flat as investors weigh that the US jobless rate fell to 9 percent from 9.4 percent against protests in Egypt.
Global stocks inched higher this week as data from the US is showing signs of a pick up in the economy although gains have been muted due to the Egyptian crisis and fears that this may spread to other countries in the Middle East.
On Monday, Asian stockmarkets fell broadly except for China and Taiwan following Friday's sharp drop on Wall Street as anti-government rioting in Egypt prompted investors to flee to less risky assets to ride out the turmoil. European markets slid on Egyptian unrest. US stocks gained on good earnings and merger activity and as fear on Egypt eased.
On Tuesday, Asian markets rose modestly led by shares in resource companies as strong US factory data offset fears that unrest in Egypt could spread elsewhere in the Middle East. European shares were boosted by upbeat euro zone manufacturing data while strong earnings from ARM and Infineon lifted technology firms. US stockmarkets rose on solid manufacturing data in Europe and the USA as the index of manufacturing activity in America rose to 60.8 which is the highest reading since 2004..
On Wednesday, Asian markets ended higher on solid Wall Street gains buoyed by encouraging earnings and manufacturing data. South Korea, China, Taiwan and Vietnam were closed for the Lunar New Year holidays. European stockmarkets were mixed after a very strong overnight performance on Wall Street, as investors shrugged off an S&P downgrade for Ireland and stubborn concerns over Egypt. US indices ended flat on good corporate earnings and escalation on the Egyptian situation where violent street clashes were reported.
On Thursday, Asian markets were mostly closed for the lunar holidays. While the Nikkei fell, Australia and India closed positive. European stockmarkets fell on weak earnings and intensified violence in Egypt. US stocks fell as investor worries about violent protests in Egypt outweighed relatively positive news on retail sales, but closed positive at the end of the session after Bernanke said that the Fed expects the economy to improve this year and inflation to remain low despite the jump in commodity prices.
This morning, Asian markets rose except for India. European stock markets closed modestly up on good corporate earnings. US stocks are flat as investors weigh that the US jobless rate fell to 9 percent from 9.4 percent against protests in Egypt.
Global stocks inched higher this week as data from the US is showing signs of a pick up in the economy although gains have been muted due to the Egyptian crisis and fears that this may spread to other countries in the Middle East.
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