Posted on 25 March, 2012 filed under economic commentary
Weekly Economic Commentary March 25, 2012
Markets
A tumultuous week for global markets: markets were on a roller-coaster last week, having touched close to 8-month highs, but were spooked by the decline in Chinese manufacturing data only to rebound on Friday. Among regional markets, Saudi and Oman were the biggest gainers as in the latter, talks of a potential merger between HSBC Holdings‟ local unit and Oman International Bank lifted shares. The euro closed at a three-week high against the dollar while gold recorded a fourth consecutive weekly loss, in spite of recording the biggest one-day gain in a month. Concerns about Iran continue to affect oil prices, with Brent closing at USD 125.13 on Friday.
Posted on 18 March, 2012 filed under economic commentary
Weekly Economic Commentary March 18, 2012
Markets
Markets have been choppy in the absence of major macro news and a catalyst which could guide expectations. Even the bank stress tests that were negative for Citigroup and other large US banks had limited impact. Regional markets, except KSA (where the trend points upwards), are caught in the erratic swings. Meanwhile, US Treasury yields moved up on better economic data and a reversal of flight-to-safety flows. Asian currencies were weak against the dollar; however, the higher than expected US inflation data towards end of the week led to a slight decline in the greenback. Tensions regarding Iran continue to impact oil prices; gold is mostly weak, leading to increased buying from central banks.
Posted on 11 March, 2012 filed under economic commentary
Weekly Economic Commentary March 11, 2012
Markets
The upward trend is faltering, due to China which announced lower expected growth for 2012 and the waning of the relief after the Greek deal. Difficult decisions remain on the table with little political appetite or coherence to tackle them. Stock markets were feeble and choppy, with regional markets no different - both the DFM and ADX dipped on profit-taking, with the former registering the largest one-week drop since early March 2011. The euro declined in spite of the swaps agreement while positive US data helped the dollar reach multi-month highs against various currencies (hitting the highest in almost a year against JPY). Oil market halted its run while heavy trading on Friday helped gold regain losses made during the week.
Posted on 4 March, 2012 filed under economic commentary
Weekly Economic Commentary March 4, 2012
Markets
The upward trend is gaining ground so even those who are skeptical of its sustainability are forced to join in because their performance is judged against a market benchmark. The wave of optimism swept also the regional markets: Dubai touched a 1-year high while the Saudi market closed yesterday at the highest since Sep 2008. The euro continued to fall against the dollar due to ECB’s injection while the dollar strengthened to a nine-month high against the yen. Gold prices were spooked by the lack of enthusiasm displayed by Bernanke for QE3, and closed on a low from a week ago while oil prices rose to the highest since mid-2008 as rumours of a pipeline blast led to a rush in buying.
Posted on 28 March, 2011 filed under economic commentary
DIFC Weekly Economic Commentary March 27, 2011
Markets
Optimism was the key word last week on global markets: S&P 500 breached the 1,300 barrier, India’s Sensex had the strongest week in 20 months and even the Eurozone debt concerns failed to dampen market sentiment. Regional markets were slightly up as well, excluding Egypt which was down 10.8% decline after the market reopened on Wednesday following a seven-week closure. The dollar continued to act as a safe-haven option given Middle East violence, Japan's nuclear crisis and euro zone debt issues. Both oil and gold posted weekly gains but continued to be volatile - gold rallied to an all-time high $1,447.4 on Thursday but closed lower.
Posted on 20 March, 2011 filed under economic commentary
DIFC Weekly Economic Commentary March 20, 2011
Markets
Market continue to hold their breath overt the tragedy in Japan, even after the G7 meeting pledged to support by any means Japan to overcome the fallout. The Topix went into free fall before rebounding strongly but it is still 9% down on the week. All other major indices ended the week in negative territory but emerging markets fared better. Regional markets were affected by the global equity weakness and by the security situation in Bahrain and Yemen. The Libyan crisis added to concern of prolonged instability. The yen jumped up against the US$ as assets are repatriated, while the oil market stabilized around recent highs. Gold maintains an upward momentum which is likely to be sustained by the heightened risks from Japan and the concerns over widespread uprisings.
Posted on 13 March, 2011 filed under economic commentary
DIFC Weekly Economic Commentary March 13, 2011
Markets
Global markets were down last week - MSCI World Index fell to the lowest level since Jan - with Japan’s earthquake, China's inflation release and dip in US consumer confidence. Regional markets performed better - recovering from previous lows after Gulf leaders announced new initiatives including housing and job provisions. Sterling fell to a near two-week low after BoE kept interest rates on hold; the yen slumped to a two-week low on Fri, after news of the quake before gaining ground later (similar to changes after the 1995 earthquake). Crude prices retreated after hitting a 2.5 year high on Mon while gold prices also declined from previous highs.
Posted on 6 March, 2011 filed under economic commentary
DIFC Weekly Economic Commentary March 06, 2011
Markets
With Middle East tensions weighing in on investors worldwide, even the optimistic US jobs data failed to cheer traders who remained more concerned by the oil price surge. As European markets remained subdued on inflation worries and Trichet's unexpectedly hawkish stance, emerging markets performed well. Regional markets were mostly down, as protests widened to some GCC countries. The Swiss franc climbed to a 29-month high while the dollar eased to a four-month low. Both oil and gold prices rose, with the latter hitting an all-time record of $1,440.4 an ounce during trading in London on Wed.