Weekly Market Summary

by Raymond Chatlani

On Monday, Asian markets rose as Japan's nuclear crisis eased as two of the six reactor units were safely cooled down, though pressure unexpectedly rose in a third unit's reactor, meaning plant operators may need to deliberately release radioactive steam. The Japanese market was closed for a public holiday. European and US stockmarkets gained after investor confidence rose on signs the situation at Japan's nuclear plant was improving, with telecoms lifted by Deutsche Telekom's sale of T-Mobile USA to AT&T.

On Tuesday, Asian shares posted modest gains, after bouncing on Monday when Tokyo markets were closed for a holiday. Support came from U.S. stocks, which were buoyed on Monday by AT&T's move to buy Deutsche Telecom. Japanese stocks jumped nearly 4 percent amid reports of progress in stabilising an earthquake-damaged nuclear plant. European markets slipped as investors worried about the outlook for higher interest rates in the euro zone and as tensions in the Middle East intensified. US stockmarkets closed modestly lower on low volume.

On Wednesday, Asian markets fell with Tokyo's Nikkei shedding nearly 2 percent, and oil ticked up as investors fretted about the possible repercussions of a nuclear crisis in Japan, violence in Libya and unrest in the Middle East. European stockmarkets fell after draft conclusions prepared for the euro zone summit showed member states will only take a decision on how to increase the effective capacity of their bailout fund by the end of June and not at this week's summit but finished in positive territory on strong miners. US Indices rose on strong buying interest, although new-home sales fell 16.9 percent last month to a seasonally adjusted annual rate of 250,000 homes to the fewest on records dating back nearly half a century.

On Thursday, Asian stockmarkets eked out small gains as higher commodities prices lifted materials shares. European markets rose although Portugese Prime Minister Jose Socrates resigned yesterday following parliament's rejection of his austerity plans which was seen as increasing the likelihood that Portugal will join Greece and Ireland in requiring a bailout from the European Union. US shares rose as data showed the improvement in the labor market was becoming sustained, with new claims for jobless benefits falling last week and the four-week moving average dropping to it lowest level in more than 2-1/2 years. Gold temporarily hit a new price of $1,447 an ounce with silver hitting a new 31 year high crossing $38 an ounce before both retreated but held near their highs.

Asian stocks rose on Friday amid optimism about upcoming company earnings, and the euro held steady as investors bet European leaders would be able to prevent a political crisis in Portugal worsening the region's sovereign debt crisis. European stockmarkets rose slightly with all major benchmark indices struggling to find direction, as bail-out concerns in Portugal continued to worry nervous investors. American markets rose as technology shares led Wall Street higher after Oracle's upbeat outlook.

A good week for equities and commodities notwithstanding the same tensions still present in Japan, the Middle East especially Libya and Portugal's potential debt problems. The markets have already discounted this news and could continue to go higher especially next month if company earnings continue to exceed expectations.