Global Overview 16/04/2012
Most Equity markets fall
Most equity markets finished the week lower after weak economic data, including a disappointing growth rate in China, and renewed eurozone
debt fears, as Spain’s bond yield rose to just short of 6%.
US consumer confidence
Latest US consumer confidence data showed that confidence cooled from a one-year high amid fears that the moderation in job growth may limit the ongoing recovery in the country.
UK credit rating
Standard & Poor’s reaffirmed the UK’s credit rating at AAA with a stable outlook, even though Moody’s Investors Service and Fitch Ratings have
warned in the past two months that the UK is at risk of losing its top grade. Both companies cited concerns about the risks to the government’s ability to pay its debts.
Spain
Data released showed that borrowing by Spanish banks from the ECB rose to record levels in March after the bank offered unlimited three-year
loans to the eurozone’s lenders.
Currencies
The euro fell late in the week against most of its major counterparts, as speculation mounted that the ECB won’t restart its government bondpurchase program, even as Spanish bond yields climbed. The €/$ rate ending the week close to 1.31, relatively unchanged overall.
Oil & gold
Crude oil traded lower for the fifth-successive week as China’s growth rate cooled and Saudi Arabia’s oil minister said the kingdom is determined to see lower prices. The oil price ended the week at almost $103 a barrel, a marginal decline of 0.5% on the week. Elsewhere, gold gained 1.6% as investors looked for safer assets, ending the week at $1,666 an ounce.
Global Equities
Overview
The S&P 500 Index fell last week, leading it to its first back-to-back weekly losses since November, as economic data in the country missed estimates, China’s growth rate cooled and eurozone debt concerns heightened again.
Earnings – JP Morgan Chase and Wells Fargo both reported better-than-expected earnings, but saw their shares fall as a result of the global economic and fiscal worries. Alcoa unexpectedly beat estimates by posting a first-quarter profit, which bucked the market trend and helped its shares to a gain of over 2% for the week.