by Raymond Chatlani
On Monday, Asian markets fell modestly on worries about Europe's banking woes and debt problems in the U.S. European stockmarkets continued to fall on sovereign debt woes and last Friday's stress tests with banks' share prices falling heavily. Mounting fears that politicians will fail to resolve the eurorozone's debt crisis sent markets sliding and Spain and Italy's borrowing costs nearing the "point of no return". The yields, or returns, on Spanish and Italian 10-year government debt hit euro-era highs over 6pc as investors demanded greater reward to shoulder the risk. Investors are unconvinced that the euro-sharing nations will manage to reach agreement on a second bail-out for Greece before Thursday's crunch summit in Brussels. US markets fell over Europe's banking troubles and an impasse over lifting the U.S. government's borrowing limit with gold breeching a new all time high above $1,600 an ounce and silver over $40 an ounce on safe haven demand.
On Tuesday, Asian stockmarkets continued to fall on sovereign debt fears. European markets bounced back led by banks but caution remained ahead of a crucial summit on Thursday where eurozone leaders will try to agree on a second rescue package for debt-stricken Greece. US markets rose as a strong quarterly report from IBM and Coca-Cola and a surge in housing starts sparked investor optimism a day after a selloff. Housing starts topped forecasts in June to touch a six-month high, and permits for future construction unexpectedly increased, the government reported. Also, President Barack Obama backed a proposal by six senators that would cut debt by $3.7 trillion over the next decade and raise the country's $14.3 trillion debt ceiling.
On Wednesday, Asian shares rose as indications of progress on a U.S. budget-reduction deal boosted investor confidence while encouraging quarterly numbers from Apple Inc and International Business Machines Corp helped Asia's beaten-down tech sector gain for a second day. European markets rose boosted by gains in Asia and overnight on Wall Street, as investors assessed global debt concerns. US stockmarkets closed nearly unchanged as the oncoming debt ceiling deadline overshadowed strong earnings from Apple Inc. Apple hit another all-time high one day after the maker of the iPhone and iPad reported quarterly revenues that far exceeded expectationsinvestors sat on their hands amid the unresolved debt ceiling crisis in Washington as the White House and Congress were negotiating a deal to raise the U.S. debt ceiling before a looming default on Aug. 2.
On Thursday, Asian stockmarkets mostly fell as poor manufacturing data on top copper consumer China countered optimism about progress in resolving debt woes in Europe and the United States as it suggests that the Chinese economy is slowing down. European and US markets surged as EU leaders agreed on a package to rescue Greece. The Greek economy will get an injection of 109bn euros (£95.9bn) with more from the private sector in the coming decades.
On Friday, Asian stockmarkets rose after European leaders agreed on a package to rescue debt-stricken Greece and gains will be sustained if U.S. policymakers also manage to cobble together a last minute deal. European markets rose on the Greek bailout package. US indices closed mixed as Caterpillar's profit missed estimates, offsetting a strong report from GE and an agreement on a Greece rescue package.
This morning, Gold hit a record high above $1,620 an ounce, while the dollar steadied and Asian stocks slipped as investors piled into bullion over fears of a possible U.S. debt default as the debt ceiling talks in Washington stalled.
Last week, global markets fell early in the week on Greek default concerns and fears that the US debt ceiling would not be raised. This all turned around on Thursday when EU leaders agreed to inject 109bn euros (£95.9bn) into the Greek economy with more from the private sector in the coming decades. Investors also became optimistic that US policymakers would reach an agreement to raise the US debt ceiling in time.
Commodities gained last week as precious metals such as gold and silver were purchased as safe havens. Oil also hit a three week high on optimism that Europe was tackling its huge debt problem while agricultural markets rallied on worries about the impact of excessive summer heat on crops.
This week, US corporate earnings should continue to be positive but markets may still fall if no comprise is reached to raise the US debt ceiling.
Tuesday, July 26, 2011
Monday, July 18, 2011
Weekly Market Summary
By Raymond Chatlani
This morning, Asian stockmarkets tumbled on Friday's poor US jobs report and today's emergency ECB meeting over the debt crisis. European shares dropped as mounting signs the region's debt crisis was spreading to Italy hammered euro zone peripheral stocks, taking a key stockmarket index to a two-week low and below an important support level. Shares of financial institutions were among the worst hit. Wall Street dived as renewed jitters about Europe's debt crisis and the global economy overshadowed the start of earnings season.
On Tuesday, Asian stockmarkets fell again on Europe's spreading debt crisis as Italian Government bond prices continued to fall. European indices fell for a third day as moves by officials to stem the European debt crisis failed to allay concerns that the risk was spreading to Italy and Spain. US markets fell as the U.S. trade gap widened sharply in May to its highest level in nearly three years as surging oil prices helped push imports to a near record and exports fell slightly from April's all-time high and as Ireland's beleaguered economy suffered another blow as Moody's cut its credit rating to junk status on fears that it will need further bail-outs.The country joins Portugal and Greece to become the third euro-area nation to be reduced to non-investment grade.
On Wednesday, Asian markets rebounded higher as China's rapid economic growth slowed in the latest quarter to a still robust 9.5pc, easing fears of an abrupt slowdown and giving Beijing room to tighten controls to fight surging inflation. Economic growth slowed slightly from 9.7pc in the January-March quarter following repeated interest rate rises and other controls, data showed on Wednesday. Factory output rebounded and retail sales grew by double digits. European stockmarkets were lifted by upbeat Chinese growth data. Wall Street closed higher after Fed Chairman Ben Bernanke suggested the Fed would consider additional measures to support the economy if the outlook gets worse, but the market is likely to get hit in the coming session after Moody's said it could cut the United States' prized triple-A credit rating. Gold hit record highs on safe-haven buying linked to the European debt crisis and a dollar weakened by hints of more economic stimulus from the Federal Reserve, while supply concerns drove most other commodities higher.
On Thursday, Asian stockmarkets fell modestly on fears that America ratings would be cut from AAA. Spot gold hit a record high $1,594 an ounce, buoyed by a sharp drop in the dollar after Moody's warned the U.S. may lose its top credit rating, the possibility of more Federal Reserve stimulus and Europe's deepening debt crisis. Both European and US markets fell on fears of the spreading Eurozone debt crisis and possible cut to the US credit rating although U.S. retail sales unexpectedly rose in June while weekly jobless claims dropped by a surprisingly large 22,000 to 405,000..
On Friday, Asian stockmarkets closed mixed although ratings agency Standard & Poor's has warned there is a one-in-two chance it could cut the United States' prized triple-A rating if a deal on raising the government's debt ceiling is not agreed soon. This is the second ratings agency that may cut the US credit rating. European markets closed lower as eight of 90 European banks failed the stress test. Wall Street advanced on strong corporate results from Citigroup and Google which offset a rash of weak U.S. economic data. Most major commodities rose on Friday, reversing the previous session's losses, as forecasts for hot weather drove up energy and agriculture prices and mounting fears about debt defaults lured investors into gold.
This morning, Asian markets fell modestly on worries about Europe's banking woes and debt problems in the U.S.
Last week, global markets fell as the ongoing debt crises in the U.S. and the euro zone kept investors from adding to their risky assets. The results of stress tests on European banks that were released after the close of trading Friday overshadowed the start of this week's trading in Asia. The results did little to reassure investor confidence in the continent's shaky financial sector, revealing that eight of 90 European banks flunked tests aimed at revealing how they would fare in another recession. Another 16 barely passed.
Investors are also unsettled by the inability of U.S. politicians to work out a deal to avoid a debt default before a deadline that is just two weeks away.
With policymakers on both sides of the Atlantic offering no clear solutions to the markets on their respective debt problems, risk-averse investors are expected to continue piling up perceived safe-haven instruments like gold which hit a record high of $ 1,598 an ounce this morning and bonds.
In the coming days there is likely to be volatility as the market grapples with these major issues. Earnings reports from US companies this week, even if positive may not lift the markets as investors focus on sovereign debt issues while commodities may continue to gain.
This morning, Asian stockmarkets tumbled on Friday's poor US jobs report and today's emergency ECB meeting over the debt crisis. European shares dropped as mounting signs the region's debt crisis was spreading to Italy hammered euro zone peripheral stocks, taking a key stockmarket index to a two-week low and below an important support level. Shares of financial institutions were among the worst hit. Wall Street dived as renewed jitters about Europe's debt crisis and the global economy overshadowed the start of earnings season.
On Tuesday, Asian stockmarkets fell again on Europe's spreading debt crisis as Italian Government bond prices continued to fall. European indices fell for a third day as moves by officials to stem the European debt crisis failed to allay concerns that the risk was spreading to Italy and Spain. US markets fell as the U.S. trade gap widened sharply in May to its highest level in nearly three years as surging oil prices helped push imports to a near record and exports fell slightly from April's all-time high and as Ireland's beleaguered economy suffered another blow as Moody's cut its credit rating to junk status on fears that it will need further bail-outs.The country joins Portugal and Greece to become the third euro-area nation to be reduced to non-investment grade.
On Wednesday, Asian markets rebounded higher as China's rapid economic growth slowed in the latest quarter to a still robust 9.5pc, easing fears of an abrupt slowdown and giving Beijing room to tighten controls to fight surging inflation. Economic growth slowed slightly from 9.7pc in the January-March quarter following repeated interest rate rises and other controls, data showed on Wednesday. Factory output rebounded and retail sales grew by double digits. European stockmarkets were lifted by upbeat Chinese growth data. Wall Street closed higher after Fed Chairman Ben Bernanke suggested the Fed would consider additional measures to support the economy if the outlook gets worse, but the market is likely to get hit in the coming session after Moody's said it could cut the United States' prized triple-A credit rating. Gold hit record highs on safe-haven buying linked to the European debt crisis and a dollar weakened by hints of more economic stimulus from the Federal Reserve, while supply concerns drove most other commodities higher.
On Thursday, Asian stockmarkets fell modestly on fears that America ratings would be cut from AAA. Spot gold hit a record high $1,594 an ounce, buoyed by a sharp drop in the dollar after Moody's warned the U.S. may lose its top credit rating, the possibility of more Federal Reserve stimulus and Europe's deepening debt crisis. Both European and US markets fell on fears of the spreading Eurozone debt crisis and possible cut to the US credit rating although U.S. retail sales unexpectedly rose in June while weekly jobless claims dropped by a surprisingly large 22,000 to 405,000..
On Friday, Asian stockmarkets closed mixed although ratings agency Standard & Poor's has warned there is a one-in-two chance it could cut the United States' prized triple-A rating if a deal on raising the government's debt ceiling is not agreed soon. This is the second ratings agency that may cut the US credit rating. European markets closed lower as eight of 90 European banks failed the stress test. Wall Street advanced on strong corporate results from Citigroup and Google which offset a rash of weak U.S. economic data. Most major commodities rose on Friday, reversing the previous session's losses, as forecasts for hot weather drove up energy and agriculture prices and mounting fears about debt defaults lured investors into gold.
This morning, Asian markets fell modestly on worries about Europe's banking woes and debt problems in the U.S.
Last week, global markets fell as the ongoing debt crises in the U.S. and the euro zone kept investors from adding to their risky assets. The results of stress tests on European banks that were released after the close of trading Friday overshadowed the start of this week's trading in Asia. The results did little to reassure investor confidence in the continent's shaky financial sector, revealing that eight of 90 European banks flunked tests aimed at revealing how they would fare in another recession. Another 16 barely passed.
Investors are also unsettled by the inability of U.S. politicians to work out a deal to avoid a debt default before a deadline that is just two weeks away.
With policymakers on both sides of the Atlantic offering no clear solutions to the markets on their respective debt problems, risk-averse investors are expected to continue piling up perceived safe-haven instruments like gold which hit a record high of $ 1,598 an ounce this morning and bonds.
In the coming days there is likely to be volatility as the market grapples with these major issues. Earnings reports from US companies this week, even if positive may not lift the markets as investors focus on sovereign debt issues while commodities may continue to gain.
Monday, July 11, 2011
Weekly Market Summary
by Raymond Chatlani
On Monday, Asian stocks climbed and the euro inched higher after policymakers approved an emergency tranche of funding for Greece, offering a lifeline to the debt-stricken nation while strong U.S. data also boosted demand for risky assets. Euro zone finance ministers on Saturday approved a 12 billion euro instalment of Greece's bailout and said details of a second aid package for Athens would be finalised by mid-September. European markets mostly rose as worries about Greece receded further. Volume was low, at 56.6 percent of the index's 90-day average, with no direction provided by Wall Street, closed for the Independence Day holiday.
On Tuesday, Asian stockmarkets mostly fell modestly after rating agency Moody's said China's local government debt burden may be 3.5 trillion yuan ($540 billion) larger than auditors estimated, putting banks on the hook for deeper losses. European markets rose modestly on low volume. US stocks were little changed as concerns about further monetary tightening in China and soft euro-zone economic data made investors cautious.
On Wednesday, Asian stockmarkets fell after Moody's slashed Portugal's credit rating to junk status, reigniting fears that it may need a second rescue package. European markets fell on the Portugese downgrade and China's interest rate rise sparked jitters about global growth prospects. China's central bank increased interest rates for the third time this year today, making clear that taming inflation is a top priority as its economy gently slows. Although Portugal's credit downgrade pressured global stocks and China's rate hike weighed on commodities, Wall Street paid little heed and pushed shares higher.
On Thursday, Asian stockmarkets rose as investors judged that the People's Bank of China is getting closer to taking a break from its multiple increases in policy rates and bank reserve requirements as the economy shows signs of losing steam. European indexes rose after the ECB raised interest by a quarter percent to 1.5 percent as expected by investors and on improved US labour data. US markets rose after data showed an improvement in the labor market ahead of Friday's key U.S. government monthly payrolls report and as retail sales came in stronger than expected, raising hopes that economic recovery was gaining traction. A report by payrolls processor ADP showed U.S. private hiring increased by 157,000 in June, well above the expected 68,000, bouncing back from a surprise slump the month before. A separate report from the Labor Department showed initial claims for state unemployment benefits dropped 14,000 to a seasonally adjusted 418,000 last week. The decline was more than economists's expectations for a fall to 420,000.
On Friday, Asian markets rose following good labour and retail sales data in the US the previous evening. Both European markets and Wall Street fell after the government said businesses added the fewest jobs in more than a year in June and the unemployment rate rose to 9.2 percent and on fears that the eurozone's debt crisis will engulf Italy. The US economy generated a net 18,000 new jobs in June, and the number of jobs added in May was revised down to 25,000, the Labor Department said. Italy's benchmark index, the FTSE Mib, closed 3.5pc down amid worries that political jostling in Rome threatens the country's fiscal stability. The flight from Italian government debt saw the yield, or return, on its 10-year bonds touch 5.3pc, a euro-era high.
This morning, Asian stockmarkets fell on Friday's poor US jobs report and today's emergency ECB meeting over the debt crisis. Australia tumbled the most as it was unveiled on Sunday that the 500 worst polluters are to pay 23 Australian dollars ($25) for every ton of carbon dioxide they emit, with the government promising to compensate households hit with higher power bills under a plan to reduce greenhouse gas emissions.
Last week, global markets rose for a third consecutive week with commodities continuing their appreciation in price. The resolution of the Greek debt crisis and investors perception that China would bring inflation under control by the last quarter of 2011 were the main catalysts for these rises.
However, markets fell on Friday on the low number of jobs created in the US during June and fears that after Greece and Ireland that Italy will be the next country that will have a fiscal crisis.
Investors are worried that Giulio Tremonti, Italy's finance minister, is threatened by corruption accusations against a former aide and seems to have lost the support of his prime minister Silvio Berlusconi. The fear is that if Mr Tremonti is forced out of government it could derail the austerity measures he has pushed through to bring down Italy's huge debt, which amounts to around 120pc of its GDP. That would leave Italy in greater danger of being sucked into the turmoil which overtook Greece and Portugal, as doubts about their finances saw them shut out of the international debt markets.
This week markets will be focusing on this morning's emergency ECB meeting over how to stop contaign spreading to Italy and US second quarter corporate earnings.
On Monday, Asian stocks climbed and the euro inched higher after policymakers approved an emergency tranche of funding for Greece, offering a lifeline to the debt-stricken nation while strong U.S. data also boosted demand for risky assets. Euro zone finance ministers on Saturday approved a 12 billion euro instalment of Greece's bailout and said details of a second aid package for Athens would be finalised by mid-September. European markets mostly rose as worries about Greece receded further. Volume was low, at 56.6 percent of the index's 90-day average, with no direction provided by Wall Street, closed for the Independence Day holiday.
On Tuesday, Asian stockmarkets mostly fell modestly after rating agency Moody's said China's local government debt burden may be 3.5 trillion yuan ($540 billion) larger than auditors estimated, putting banks on the hook for deeper losses. European markets rose modestly on low volume. US stocks were little changed as concerns about further monetary tightening in China and soft euro-zone economic data made investors cautious.
On Wednesday, Asian stockmarkets fell after Moody's slashed Portugal's credit rating to junk status, reigniting fears that it may need a second rescue package. European markets fell on the Portugese downgrade and China's interest rate rise sparked jitters about global growth prospects. China's central bank increased interest rates for the third time this year today, making clear that taming inflation is a top priority as its economy gently slows. Although Portugal's credit downgrade pressured global stocks and China's rate hike weighed on commodities, Wall Street paid little heed and pushed shares higher.
On Thursday, Asian stockmarkets rose as investors judged that the People's Bank of China is getting closer to taking a break from its multiple increases in policy rates and bank reserve requirements as the economy shows signs of losing steam. European indexes rose after the ECB raised interest by a quarter percent to 1.5 percent as expected by investors and on improved US labour data. US markets rose after data showed an improvement in the labor market ahead of Friday's key U.S. government monthly payrolls report and as retail sales came in stronger than expected, raising hopes that economic recovery was gaining traction. A report by payrolls processor ADP showed U.S. private hiring increased by 157,000 in June, well above the expected 68,000, bouncing back from a surprise slump the month before. A separate report from the Labor Department showed initial claims for state unemployment benefits dropped 14,000 to a seasonally adjusted 418,000 last week. The decline was more than economists's expectations for a fall to 420,000.
On Friday, Asian markets rose following good labour and retail sales data in the US the previous evening. Both European markets and Wall Street fell after the government said businesses added the fewest jobs in more than a year in June and the unemployment rate rose to 9.2 percent and on fears that the eurozone's debt crisis will engulf Italy. The US economy generated a net 18,000 new jobs in June, and the number of jobs added in May was revised down to 25,000, the Labor Department said. Italy's benchmark index, the FTSE Mib, closed 3.5pc down amid worries that political jostling in Rome threatens the country's fiscal stability. The flight from Italian government debt saw the yield, or return, on its 10-year bonds touch 5.3pc, a euro-era high.
This morning, Asian stockmarkets fell on Friday's poor US jobs report and today's emergency ECB meeting over the debt crisis. Australia tumbled the most as it was unveiled on Sunday that the 500 worst polluters are to pay 23 Australian dollars ($25) for every ton of carbon dioxide they emit, with the government promising to compensate households hit with higher power bills under a plan to reduce greenhouse gas emissions.
Last week, global markets rose for a third consecutive week with commodities continuing their appreciation in price. The resolution of the Greek debt crisis and investors perception that China would bring inflation under control by the last quarter of 2011 were the main catalysts for these rises.
However, markets fell on Friday on the low number of jobs created in the US during June and fears that after Greece and Ireland that Italy will be the next country that will have a fiscal crisis.
Investors are worried that Giulio Tremonti, Italy's finance minister, is threatened by corruption accusations against a former aide and seems to have lost the support of his prime minister Silvio Berlusconi. The fear is that if Mr Tremonti is forced out of government it could derail the austerity measures he has pushed through to bring down Italy's huge debt, which amounts to around 120pc of its GDP. That would leave Italy in greater danger of being sucked into the turmoil which overtook Greece and Portugal, as doubts about their finances saw them shut out of the international debt markets.
This week markets will be focusing on this morning's emergency ECB meeting over how to stop contaign spreading to Italy and US second quarter corporate earnings.
Monday, July 4, 2011
By Raymond Chatlani
On Monday, Asian equities slipped and the US Dollar rose, with investors positioning their portfolios ahead of a Greek vote on unpopular fiscal austerity measures this week and a gauge of U.S. factory activity that is expected to show slowing growth. European and US stocks recovered some of last week's losses in early trading after encouraging signs about Europe's debt crisis overshadowed weak data about spending by American consumers. Markets rose as French banks agreed to accept slower repayment of Greece's debt although US consumer spending was unchanged in May, the Commerce Department said which was the worst result since September 2009. And when adjusted for inflation, spending actually dropped 0.1 percent.
On Tuesday, Asian stocks rose and the euro held its gains on Tuesday as investors cheered an agreement by French banks to roll over Greek debt, a move that could lessen the chance of a disorderly default by the nation at the heart of Europe's debt crisis. European and US stockmarkets rose as the Greek budget passed along with enough votes for the austerity measures to be accepted so that Greece will receive the first tranche of further financial aid.
On Wednesday, global markets all rose when Greece passed an austerity plan to avoid a sovereign debt default. Commodities also rallied for a second day, as the dollar fell after Greece cleared a critical hurdle to its debt bailout although protesters are still causing chaos in Athens.
On Thursday, Asian markets all rose for a third day on Greece's austerity measures. European shares rose for a fourth day as Greece edged closer to securing funds needed to avoid default. US stockmarkets rose on data showing that factory activity in the U.S. Midwest accelerated in June.
On Friday, Asian equities edged higher, getting a lift as fears of an imminent default by Greece receded and on encouraging data from the U.S. overnight. The markets appear to have taken weaker-than-expected China data in their stride. China's factory sector grew at its slowest pace in 28 months in June as new orders expanded less quickly, with weaker global demand and tight monetary policy at home pinching production.The official purchasing managers' index (PMI), designed to provide a snapshot of conditions in China's vast manufacturing sector, fell to 50.9 in June, below expectations for a reading of 51.3 and down from 52 in May, the China Federation of Logistics and Purchasing said on Friday. Europeanand US markets rose following a report that manufacturing rebounded in June. The Institute for Supply Management's manufacturing index rose to 55.3 from 53.5 in May.
This morning, Asian stocks climbed and the euro inched higher after policymakers approved an emergency tranche of funding for Greece, offering a lifeline to the debt-stricken nation while strong U.S. data also boosted demand for risky assets. Euro zone finance ministers on Saturday approved a 12 billion euro instalment of Greece's bailout and said details of a second aid package for Athens would be finalised by mid-September.
Last week global markets rose significantly on the back of the Greek government's victory on Wednesday in the critical vote on a new set of austerity packages which marks at the very least a lull in a crisis that has seen investors turn to the safety of government bonds in recent weeks. Investors were calmed after fears of an immediate Greek bankruptcy and had a higher appetite for risk. Commodities also rose except for gold and silver which fell slightly.
There is hope that for final six months of 2011 will be very positive for stockmarkets and commodities. Investors enthusiasm also got a lift on Friday from an unexpected expansion in American manufacturing.
On Monday, Asian equities slipped and the US Dollar rose, with investors positioning their portfolios ahead of a Greek vote on unpopular fiscal austerity measures this week and a gauge of U.S. factory activity that is expected to show slowing growth. European and US stocks recovered some of last week's losses in early trading after encouraging signs about Europe's debt crisis overshadowed weak data about spending by American consumers. Markets rose as French banks agreed to accept slower repayment of Greece's debt although US consumer spending was unchanged in May, the Commerce Department said which was the worst result since September 2009. And when adjusted for inflation, spending actually dropped 0.1 percent.
On Tuesday, Asian stocks rose and the euro held its gains on Tuesday as investors cheered an agreement by French banks to roll over Greek debt, a move that could lessen the chance of a disorderly default by the nation at the heart of Europe's debt crisis. European and US stockmarkets rose as the Greek budget passed along with enough votes for the austerity measures to be accepted so that Greece will receive the first tranche of further financial aid.
On Wednesday, global markets all rose when Greece passed an austerity plan to avoid a sovereign debt default. Commodities also rallied for a second day, as the dollar fell after Greece cleared a critical hurdle to its debt bailout although protesters are still causing chaos in Athens.
On Thursday, Asian markets all rose for a third day on Greece's austerity measures. European shares rose for a fourth day as Greece edged closer to securing funds needed to avoid default. US stockmarkets rose on data showing that factory activity in the U.S. Midwest accelerated in June.
On Friday, Asian equities edged higher, getting a lift as fears of an imminent default by Greece receded and on encouraging data from the U.S. overnight. The markets appear to have taken weaker-than-expected China data in their stride. China's factory sector grew at its slowest pace in 28 months in June as new orders expanded less quickly, with weaker global demand and tight monetary policy at home pinching production.The official purchasing managers' index (PMI), designed to provide a snapshot of conditions in China's vast manufacturing sector, fell to 50.9 in June, below expectations for a reading of 51.3 and down from 52 in May, the China Federation of Logistics and Purchasing said on Friday. Europeanand US markets rose following a report that manufacturing rebounded in June. The Institute for Supply Management's manufacturing index rose to 55.3 from 53.5 in May.
This morning, Asian stocks climbed and the euro inched higher after policymakers approved an emergency tranche of funding for Greece, offering a lifeline to the debt-stricken nation while strong U.S. data also boosted demand for risky assets. Euro zone finance ministers on Saturday approved a 12 billion euro instalment of Greece's bailout and said details of a second aid package for Athens would be finalised by mid-September.
Last week global markets rose significantly on the back of the Greek government's victory on Wednesday in the critical vote on a new set of austerity packages which marks at the very least a lull in a crisis that has seen investors turn to the safety of government bonds in recent weeks. Investors were calmed after fears of an immediate Greek bankruptcy and had a higher appetite for risk. Commodities also rose except for gold and silver which fell slightly.
There is hope that for final six months of 2011 will be very positive for stockmarkets and commodities. Investors enthusiasm also got a lift on Friday from an unexpected expansion in American manufacturing.
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