Markets

GProgress in the Greek debt negotiations alongside strong US data led to upbeat market sentiment. Better than expected financial results of GCC companies, amid positive news from the global markets, supported rallies in the region’s stock exchanges leading to substantial gains in Kuwait and Dubai bourses. The euro gained against the dollar and yen towards the end of last week as the Greece dilemma seemed closer to a resolution; the pound also gained against the dollar, given the rise in retail sales. Both gold and oil prices were up, with Middle East tensions sending oil prices higher.

Markets

Greek troubles and S&P downgrades played havoc last week, causing the rally in Asian markets also to wind down towards end of the week, even as TOPIX and Hong Kong remained near six-month highs. Regional markets were mixed, with Egypt gaining and Saudi closing at a 21-month high yesterday alongside small declines in Qatar and Abu Dhabi exchanges. Among currencies, the euro climbed after the Greek austerity plan received the go-ahead from the Cabinet but dipped on the latest uncertainty about Parliament ratification while the Indian rupee had its worst week since Dec last year. Gold prices continued to decline for a second consecutive week while oil prices spiked to a six-month peak on Thursday given the tensions on Iran.

Markets

The week started with a worldwide tumble when China's bourse reopened after a week with a 1.7% drop and Asian market sentiment was influenced by lower earnings. In general, just when you were thinking that the rebound in risky assets seen at the turn of the year is turning sour and the much touted January effect is over, markets recovered and ended the week on a positive note after the release of positive employment data in the US. Regional markets followed the global trend, with Saudi reaching a six-month high though the rally in Egypt was marred by recent riots. Among currencies, the dollar rose while its Asian counterparts gained on strong fund inflows. Oil prices were up last week; gold recorded its biggest one-day loss in over a month on Friday.

Markets

With China closed for the New Year, stock markets continued a gradual decline (especially in Europe) which the State of the Union address by Obama and some moderately positive news from Europe (e.g. IFO & PMI) did not stem. US GDP data failed to boost markets while poor show in Europe’s corporate earnings also added to the worries. Regionally, most markets were up - with Egypt riding high on political optimism; volumes in DFM for the week were the highest since mid-June 2011; Saudi markets closed at a 6-month high yesterday. The dollar fell last week as the Greek debt deal dragged on, and led to a rise in gold prices to a 7-week high. Oil prices were up after the announcement of Europe's decision to ban oil imports from Iran, but trimmed gains after the US GDP data were released; IMF meanwhile warned that crude prices could rise by almost 30% if Iran halts its oil exports.

Markets

Stock markets reacted positively to China's growth data with ripples around the rest of the world, but after some directionless sessions the week ended on a softer tone in Europe and the US. European spreads came down somewhat but Portugal's 10yr yield reached 13.81%. Among regional markets, ADX fell to a five month low last week, while Saudi Arabian shares gained the most in more than five weeks yesterday, on strong Q4 corporate earnings. Euro fell from a two-week high against the dollar on Friday while emerging market currencies had a much favourable week. Oil prices dropped in spite of the tensions in Iran, on expectations of lower demand and ahead of the outcome of the Greek deal. Gold prices were up 1.7% compared to a week ago, though prices eased on Friday.

Markets

Stock markets were generally stable awaiting some news from the usual spate of meetings and "summits" among EU leaders and institutions. The seemingly softer German stance on fiscal discipline lifted European bourses and sovereign spreads, before another round of sovereign downgrades in Europe delivered a blow. Asia’s sentiment was helped by anticipation of a looser monetary stance in China. Regional markets were down, except Egypt which gained largely from Building & Construction and Property sectors. The euro fell further after the recent set of sovereign downgrades in the Eurozone. Oil prices, which rose on Iran’s threat to block the Strait of Hormuz, dropped after EU downgrades brought attention back to the sovereign debt crisis. Gold prices posted gains from last week – but slipped on Fri, after recording a one-month high on Thursday.

Markets

Stock markets started the year on a strong note, but then momentum faded for lack of a catalyst. Even the strong US labour data failed to cheer markets, which continue to remain depressed given the distressed Eurozone. Regional markets were mixed: low volumes prevailed even as Qatar hit an 11-month high (at close on Tues) and Saudi markets closed at the highest since Aug 1st yesterday. The dollar hit a 16-month high against the euro; gold recorded its biggest weekly gain in five weeks and Iran tensions drove up oil prices.

Markets

Global Stock markets ended the year on a low note - posting their first annual loss since 2008, with emerging markets also closing lower: MSCI’s Asia Pacific Index declined almost 18% in 2011, after closing on a slightly positive note in the last week. Regional markets were hit by lower volumes and liquidity towards the end of the year, with little to cheer given the still ongoing regional turmoil. The euro hit a historic 10-year low against the yen and recorded a 15-month low against the dollar, also closing as the worst performing currency in the year 2011, while the Renminbi was the best performing currency. Commodities had a relatively better year with gold playing its role as a safe haven asset alongside the US Treasuries and the yen.

Markets

The Christmas week brought some relief to market tensions, following the euro area‟s pledge to inject EUR 150bn in bilateral loans to the IMF, but especially after ECB lent a massive EUR 489.2bn (19.6% of total assets) to banks at 3-year maturity, and the stellar placement of sovereign debt in Spain. End year squaring and low liquidity however blur the picture. It was a mixed week in the regional markets, with Aldar‟s delisting talks bringing the UAE markets down to multi-year lows, while Saudi Arabia and Qatar closed higher compared to a week ago. In currencies, Sterling registered an 11-month high against the euro and the euro was slightly higher against USD. Oil prices are back up to last week levels, on growing tensions in Iran (tougher US sanctions) and Iraq (domestic political infighting). Gold price is meanwhile marking time waiting for the QE3.

Markets

Markets were mostly down from a week ago, as Eurozone sovereign debt fears continue to play out, with ratings downgrades and warnings of potential downgrades by rating agencies. Regionally, the failed MSCI reclassification bid by UAE and Qatar dampened spirits and led to a decline in markets. Downgrade fears and decline in risk appetites led the dollar to its highest level in 11 months, boosting its status as a safe haven. As the dollar stature gained, commodity prices dropped: gold was down to the lowest level in 3 months.

Markets

Stock markets were in an upbeat mood waiting for some breakthrough from the EU Summit. But the press conference by ECB President Draghi spooked the enchantment by reminding that many banks remain unable to sell their debt into the market and face a large refinancing hump next year. Draghi also asserted that no large scale debt monetization will take place over the foreseeable future in the Eurozone. The conclusion of the EU Summit reiterated this orthodox stance. Structural reforms are the priority. Regional markets are likely to open higher this week, if Saudi market reaction to the EU Summit is taken as a proxy - Saudi markets rose to the highest level since August yesterday. The euro rose against the dollar post-EU Summit and commodities were generally lower, with both oil and gold prices down - the latter by almost 2% from the previous week.

Markets

Stock markets had the best week in three years on hopes that an agreement on the new governance framework of the euro area is imminent. Another catalyst for a rebound was the decision among 6 central banks, including the ECB and the Fed, to extend existing cheaper USD swap lines for banks to boost liquidity and ease strains in financial markets. Intra-euro bond spreads narrowed and were less volatile. The situation is however in a flux with developed markets in search of catalysts and emerging markets trying to decouple. Regional markets have been somewhat more resilient of late, with the expectations of an MSCI upgrade for the UAE and Qatar into emerging market status the most expected news in the coming two weeks. The euro had a positive week, rising against the dollar, while both oil and gold prices increased from a week ago.

Markets

Last week, ending with US Thanksgiving turned out to be a disastrous one for equity markets globally – Wall Street and Asian markets recorded their the worst weekly performance since Sep, Nikkei 225 hit the lowest level since Apr 09, Dubai stocks hit a 7-year low and the Egyptian bourse closed at its lowest in more than two and a half years. Sterling fell to a seven-week low while the Indian rupee continued to be one of the worst-performing emerging market currencies against the dollar. The worsening global outlook led commodity prices down, with aluminium prices falling below $2k a tonne for the first time since 15 months.

Markets

A dismal week for markets despite positive data from the US, as Eurozone’s political tensions continue to hurt investor sentiment and Spanish elections take centre stage. This was reflected in regional markets as well with most indices down almost 1% from a week ago. Dollar strengthened (dollar index up +1.5%) and the euro came under pressure while haven demand helped the pound; Indian rupee fell to a 32-month low sliding to 51.20 against the dollar. Commodity prices were mostly lower last week, with gold down by almost 4%.

Markets

The markets continued to be volatile in the backdrop of the dramas in Greece and Italy, with Italy’s 10-year debt soaring dangerously close to and above 7% last week - also driving euro to its lowest level against the dollar in a month. Risk appetite gradually improved on Friday with indications of political change suggesting greater likelihood of reforms, including austerity packages, leading to a market rally as Eurozone debt fears eased. Regional markets were mostly down last week, but the positive sentiment in Saudi market yesterday is likely to reflect in its regional counterparts’ behaviour today. The euro was down almost 0.3% compared to a week ago, while gold and oil prices were helped by the softer dollar.

Markets

Agreement to avoid a Greek default & boost the EFSF was hailed by stock markets all over the world. The Standard & Poor’s 500 Index jumped extending the biggest monthly rally on record since 1974 pushed also by encouraging US GDP figures. On Friday, however, concern that the post-EU euphoria went too far, drove indices down. When details of the agreement are clear, enthusiasm will give rise to a more nuanced assessment. Regional markets followed the global trend and recorded gains as progress in the EU boosted risk appetite. Major currencies gained against the USD with yen reaching a record high of JPY 75.64. Oil price was positively affected, with WTI picking up faster than Brent and gold prices were up 6.0% on a lower dollar.

Markets

Stock markets received a German cold shower by Angela Merkel who expressed skepticism on a quick recapitalization of the banking system in Europe and another round of downgrade for Spain and Italian banks shook further the precarious situation. The gains recorded in the last two weeks were eroded across the globe with emerging markets being somewhat more resilient. All eyes are on the EU Summit for further direction. Regional markets however were mostly on the defensive, despite the resilience of oil prices. Currency markets were marking time while the yen hit new highs.

Markets

The markets were mostly positive last week, in spite of Spain’s downgrade by S&P, given the support of Trichet’s call for quick and coordinated action on bank recapitalization decided in principle between Merkel and Sarkozy (due to be finalized at the EU summit next week) and Wall Street closing on a high, boosted by optimistic data and financial results. Regional markets painted a mixed picture - with all eyes on Q3 financial results. Currencies strengthened against the dollar - the euro rallied while the yen was the weaker performer among major currencies. Oil prices jumped to a month’s high on tight supply and the weaker dollar as gold prices were up 2.6% from a week ago.

Markets

After a week spent in an upbeat mood, the release of labour market data in the US had stock markets was about to seal the week on a positive note till Fitch’s downgrade of Italy and Spain spoiled the sentiment for global equities and debt markets. In the region, markets were down with the Eurozone debt crisis weighing in on investor sentiment. Dollar dropped after the jobs data release giving the GBP a boost - up 2.1% compared to a week ago. In the commodities market, the biggest gainer was copper - which surged off 14 month lows while oil also recovered (Brent recovered from below $100 gaining almost 3%).

Markets

The weekly stock market oscillatory pattern has displayed a remarkable regularity since August and last week recorded the expected global upswing. Investors were mesmerized by the prospect of a “Mother of All Quantitative Easing” Euro 3 trillion fund, although short on details and long on rumours. Some real respite came from the approval by the Bundestag of the EFSF which eliminates some uncertainty over the most immediate future. However, regional markets did not follow the global picture with most markets except Saudi down compared to a week ago. The euro strengthened while the dollar continued to witness high demand and oil recovered sharply. Gold on the contrary is being sold to fund some liquidity which continues to be at premium.

Markets

It is becoming a pattern: a week of mayhem followed by a weak rebound and then another weekly plunge. Last week was a bad one. Stock markets were falling across the board due to the usual combination of concerns over fiscal sustainability, downgrading of sovereign and bank debt, and ineffective political measures on both sides of the (North) Atlantic, with regional markets following the declines globally. Risk aversion in equity markets led to a higher dollar, with the Indian rupee one of the worst performing Asian currencies, dropping almost 5% from a week ago. Oil price dropped following most commodity prices while gold also lost its shine.

Markets

This was a week of relative relief for stock markets, which gained some ground thanks to reported progress on the Greek front and a central bank swap facility set up to provide dollar liquidity to European banks. The situation remains tense and fragile. Regional markets were also broadly stable. Eurozone tensions moved to the FX market with euro declining. Oil prices almost remained unchanged at $88 amid signs of weak demand while the gold prices reached $1810 compared to $1855 last week amid increasing efforts to contain the European debt crisis.

Global Developments

Americas:

• US Industrial production rose 3.4% at annual rate in August with manufacturing output rising 3.8%, while the output of mines moved up 5.8% and the output of utilities decreased 2.4% as temperatures moderated.
• US CPI inflation moderated in August to 0.37% mom, due to falling energy price inflation (from 2.8% to 1.2%). Core consumer prices however, continued to rise by 0.24% mom. US Producer prices remained flat in August: a fall in energy prices compensated an increase in food prices and a small uptick (0.1% mom) in the core.
• US Retail sales were unchanged in August, while a small gain was expected. "Core" retail sales (ex-autos, gas and building materials) were also unchanged after an increase of 0.3% in July. Part of this result could be attributed to Hurricane Irene, but overall weakness is evident.
• Initial jobless claims unexpectedly rose to 428k in the week ending September 10, up from a revised 417k in the previous week. Irene did not affect much the figure, hence claims returned to around the level that prevailed in June, consistent with near zero job growth.
• US current account balance was almost constant at -$118bn in Q2. The goods and services deficit widened slightly, offset by net investment income. In other hand, the U.S. government’s budget deficit reached $1.23 tn in August, down slightly from $1.260 tn last year, attributing to improvement of income-tax collections and cut spending.

Europe:

• Moody’s downgraded two French banks on fears that holdings of European sovereign debt threaten their solvency.
• Euro-zone industrial production jumped by +1% mom in July, (-0.8% mom in June). This was weaker than the consensus expectations and hides great variation. Germany and Netherlands had strong numbers while Italian Industrial Production fell -0.7% mom and -1.6% yoy in July.
• In Euro Area, the industrial production jumped 4.2% at annual rate in August, led by 11.7% growth in production of capital goods and major market groups grew 10.4% in Germany. Annual inflation was 2.5% in August 2011, driven by surge in transport (5.6%) and energy (11.8%) prices. The external trade surplus reached euro 4.3 bn in July compared with euro 4.7 bn in July 2010. Exports and imports rose by 5% and 6% respectively. However, the current account recorded a deficit of 28.5 bn n 2Q2011 compared with a deficit of 18.6 bn in 2Q2010.
• In Germany, foreign trade exports jumped 14.7% at annual rate to 525.6 bn in 1H2011.
• In France, the current account deficit reached 4.5 bn in July. Inflation rate rose 2.2% from a year earlier in August.
• UK CPI inflation rose marginally from +4.4% yoy to +4.5%yoy in August - in line with consensus expectations.
• Italy’s sovereign credit rating remains under review for a possible downgrade for the first time in almost two decades by Moody’s.

Asia and Pacific:

• The Reuters Tankan survey of Japanese manufacturing improved only 2 points, to +8, as production was restored after the quake. The non- manufacturing survey fell to +3, from +7 in August. Both sectors have lost steam after quake reconstruction; hence they are now hit by the global slowdown.
• India’s Industrial Production growth dropped to 3.3% yoy in July, (8.8% in June vs. consensus 6.2%). Sequentially, IP declined by 1.8% mom sa in July, compared to 1.7% in June. IP has declined on a qoq basis for the last two months, due to weak capital goods index, down 12.3% mom in July.
• The Reserve Bank of India increased the repurchase rate to 8.25% from 8%, in order to contain India’s inflation rate which is the highest among the BRICS nations at 9.78% (YoY) in August.
• Singapore August non-oil domestic exports grew by 5.1% yoy versus a fall of 2.8% yoy in July, beating expectations, but the core items (excluding volatile items) continue to portray weakness in the external sector which is the harbinger of a technical recession in Q3.
• Foreign direct investment in China climbed 11.1% in August from a year earlier as Investment from overseas totaled $8.45 billion last month.

Bottom line: The scant data flow this week was notable only because they confirmed the marked global slowdown. Singapore’s exports, a gauge of global activity, are slowing. It is becoming ever more evident that the slide will not be halted by normal countercyclical measures. In Japan a JPY 10 trn supplementary budget is in the cards, and there should be some support for domestic demand from public works etc. in the disaster zone, but nothing that could sustain domestic demand. In the US the Obama plan has some merits but is not a catalyst for a V-shaped recovery. In Europe confusion at EU level prevails, with Germans torn between resentment towards the Club Med and fears of impending mayhem if the euro area breaks up.

Regional Developments

• The Monthly Bulletin from the Oman Ministry of National Economy shows moderate economic growth accompanied by modest inflation. Oil price had averaged USD 78.45/b in 2010 against a budget assumption of USD 50/b and the outlook remains supportive. For the 2011 budget the government has projected oil price of $58/b, while the average price is so far is USD 106.58/b.
• UAE foreign trade ministry said that the foreign trade agreement between GCC and EU is around corner and 99% of agreement articles/agendas have been finalised.
• KSA inflation rate rose 4.8% at annual rate in August, led by surge prices in commodity & services (8.2%) and rent (7.8) expenditure group.
• The 11th meeting of the GCC Monetary Council board agreed to create 'Gulfstat', a regional statistics initiative and finalizing the headquarters agreement between the GCC Monetary Council and the Government of Saudi Arabia and the Council’s Financial Regulations.

UAE Focus

• Abu Dhabi Inflation rate rose 2.4% in first 8 months of 2011.
• The General Pension and Social Security Authority revealed that the number of pensioners reached 75,000 while the GPSSA total investment reached AED 25 bn of which AED 22 bn as deposits in local banks and the rest as external investment with limited low risk.
• DIFC has Signed MOU with Pudong Financial Services Bureau for Financial Services Exchange and Development. This is the second agreement after the MOU with Chengdu Financial City Investment and Development Co. (CFCID)
• NPL in banking sector jumped 29.8% (YoY) to reach AED 48.4 bn or 4.6% of total loans in July, while total loans increased 2.6% for the same period.
• Nakheel returned to profit (Dh58.2 million) in 1H2010 after losing $20.85 bn in 2009 according to its bond prospectus. The prospectus revealed that Dubai property prices almost declined 50% between the height of the property boom and 2010. The prospectus also revealed that Nakheel had reduced its workforce from 3,818 to 986 employees or by 74%.

Annex: ADIA Portfolio highlights

• ADIA manages a diversified global investment portfolio, across more than two dozen asset classes and subcategories, including quoted equities, fixed income, real estate, private equity, alternatives and infrastructure.
• Approximately 80% of ADIA’s assets are managed by external fund managers whose activities are monitored daily.
• Approximately 60% of ADIA’s assets are invested in index-replicating strategies.
• In U.S. dollar terms, the 20-year and 30-year annualized rates of return for the ADIA portfolio were 7.6% and 8.1% respectively, as of 31 December 2010. Performance is measured based on underlying audited financial data and calculated on a time-weighted return basis.
• Portfolio overview By Asset Class
  

  Asset Class	Min.	Max.
  Developed Equities	35%	45%
  Emerging Market Equities	10%	20%
  Small Cap Equities	1%	5%
  Government Bonds	10%	20%
  Credit	5%	10%
  Alternative	5%	10%
  Real Estate	5%	10%
  Private Equity	2%	8%
  Infrastructure	1%	5%
  Cash	0%	10%

• Portfolio overview By Region
  

  Region	Min.	Max.
  North America	35%	50%
  Europe	25%	35%
  Developed Asia	10%	20%
  Emerginig markets	15%	25%

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Markets

Stock markets started the week sinking along with the intensification of Italy’s fiscal crisis. The first session post-US Labor day was crisis prone, but the decision by the German Constitutional Court to uphold German euro support stemmed some of the worst fears. Clues from Obama’s speech on measures against recession were too vague and uncertain to inject optimism and the resignation of Jürgen Stark from the ECB was another irritant. Regional markets seemed to be little affected by the contagion, with Egypt, Bahrain and Kuwait actually up. The safe haven effect led the dollar to appreciate by 4% against the euro; however oil prices remained stable while the gold prices slid 1.4%.

Global Developments

Americas:

• President Obama introduced the American Jobs Act to finance infrastructure, encourage employers to hire and increase wages. The total amount, less than half a trillion dollars is not seen as changing the US growth path from the current stagnation: see Annex on American Jobs Act.
• ISM non-manufacturing index moved up to 53.3 in Aug (Jul: 52.7), taking the markets by surprise.
• U.S. unemployment claims rose by 2,000 to 414,000 a sign that the labor market is not gaining traction.
• U.S. trade deficit shrunk to a 3-month low USD 44.8 bn from a revised USD 51.6 bn in June as exports climbed to a record and crude oil imports
  eased. The gap shrank 13.1%, the most since February 2009.
• The Fed Beige Book highlighted that economic activity continued to expand at a modest pace.

Europe:

• ECB left its key interest rate unchanged at 1.5%, pointing to downside risks to economic outlook for the euro area and the high uncertainty in the financial markets.
• German inflation was 2.4% yoy in August, while the trade surplus reached €10.4 bn in July dropping 23.4% yoy.
• German factory orders declined 2.8% mom in July after +1.8% in June, weaker than expected, pointing to sluggish industrial performance ahead. German IP jumped by a walloping 4.0% mom after -1.0% in June. The index has climbed 29% from its low in April 2009 exceeding the pre-crisis
  peak of February 2008 for the first time.
• The German Constitutional Court ruled that further support to indebted countries does not violate the Constitution, but financial assistance
  (including issuance of Eurobonds) requires Parliamentary approval.
• Italy’s emergency austerity package was voted in the Senate, but obtained only a grudging nod from the ECB.

Asia and Pacific:

• In China, retail sales increased 17% yoy in August, with inflation at 6.2% yoy, and industrial output rising 13.5%. The trade surplus was $17.8
  billion with exports and imports climbing 24.5% and 30.2% respectively.
• Japan’s machinery orders fell unexpectedly by 8.2% mom, the most in 10 months in July (+7.7% in June), as the yen’s postwar record eroded
  profits and discouraged investments. GDP revision showed a 2.1% yoy contraction.
• In South Korea, GDP expanded 3.4% yoy in 2Q2011, with a 27.1% increase in exports while industrial production rose 3.8%. In light of this
  development the central bank decided to leave the key rate policy unchanged at 3.25%.
• In Taiwan, the inflation rate was 1.3% yoy in Aug but exports rose only 7.2% yoy, the slowest pace in two years.

Bottom line:

From macroeconomic data, which continue to point to a recession, markets are turning their attention to policy responses for clues. Unfortunately they are not finding much solace there either. Obama’s much awaited speech on a new stimulus is a regurgitation of old ideas and the Republican support is not assured by any means. The G7 Finance Ministers stressed that they will maintain the stability of banks and financial markets and take measure to boost growth. But fault lines emerged between the two sides of the Atlantic with the US pressing the EU authorities to act more forcefully and the Canadian minister doubting that Greece could stay in the euro. Meanwhile the OECD forecast growth across the G7 group of major industrialized economies at 1.6% yoy in Q3 before slowing to just 0.2% in Q4.

Regional Developments

• Bahrain's telecoms regulator has issued notices to Bahrain Telecommunications Co (Batelco) and Saudi Telecom Co unit Viva, pointing to anti- competitive pricing on international calls to Asia.
• SMN Power Holding, Oman's largest electricity company, part-owned by Mubadala, plans to raise RO 25 million ($64.9 million) by offering 35% of its shares in an initial public offering (IPO) on the Muscat stock exchange.
• Egypt’s balance of payment deficit reached $9.2 bn in 2010-2011 fiscal year compared to $3.4 bn surplus in previous fiscal year while the current account deficit declined by 35.9% to reach $2.8 bn, the foreign reserves dropped from $36 bn to $25 bn, FDI declined by 67.6% to reach $2.2 bn from $6.8 bn, tourism income dropped by 47.5% to reach $3.6 bn from $6.9 bn, GDP expanded 1.8%.
• Egyptian Finance Minister said the country had received just USD500 million of USD7 billion pledged by the UAE and KSA, though discussions on the remaining funds were ongoing and he expects agreement by the end of the year. This is the first albeit small foreign financing aid for Egypt but it remains promising as a ray of light at the end of a dim tunnel.
• IMF has cautioned Kuwait that its financial sector has the potential of creating a suitable environment for money launderers and terrorist financers and has provided 49 recommendations in a FATF report.
• Kuwait’s inflation rate rose to 4.6% yoy in July, led by surge in food and household goods prices.
• Kuwait’s nominal GDP rose 16.9% yoy in 2010 to KWD 35.6 bn as oil-GDP jumped by 22.5% and non-oil GDP 9.8% after a 23% decline in
  2009.
• The foreign ministers of Jordan and Morocco have attended GCC foreign ministerial meeting to discuss the GCC accession in Riyadh last Sunday.
• The GCC Secretariat proposed a flexible timetable for VAT allowing GCC counties to implement VAT individually between 2012 and 2015.
• Qatar increased public and pension wages by 60% at a total estimated cost of QAR 30 bn.
• Algosaibi and Saad, Saudi indebted family groups, have reached initial an agreement under the supervision of a committee including SAMA,
  CMA and the Royal Court formed by H.H. King Abdullah. The committee concluded that the Saad group is to be blamed and attributed to it the responsibility of Algosaibi group debt as well. This initial agreement will allow banks to start claiming their credits (source: alrroya).

UAE Focus



• HH. Sheikh Mohammed Al-Maktoum inaugurated second metro line, Green line, which runs about 23 kilometers through residential and commercial areas with 16 of the 18 stations operating with a total cost estimated at AED 29.5 bn for the whole metro project.
• HH. Sheikh Maktoum Al-Maktoum, in his capacity as DIFC president, has appointed Saeb Eigner as the new chairman of DFSA and has also renewed the existing DFSA board members for a further three-year term.
• Minister of State for Financial Affairs Obaid Humaid Al Tayer told Dow Jones that UAE is planning to spend an additional Dh110 million on top of its 2011 budget and to pass a new bankruptcy & public debt law before year's end.

Annex: Fact Sheet on the American Jobs Act

On Sep 8 President Obama unveiled the American Jobs Act which will allow the US economy to create jobs and increase wages. The act comprises
five key components:

• Tax Cuts to Help America’s Small Businesses Hire and Grow: the act will cut in half the taxes paid by businesses on first $5 mn in payroll; eliminate payroll tax for businesses that increase payroll by wages or employees with cap at first $50 mn; reduce regulatory requirement and rewarding firms for making investments by allowing them to deduct the full value of those investments from next year tax.
• Putting Workers Back on the Job While Rebuilding and Modernizing America: firms that hire veterans will gain tax credits from $5,600 to $9,600; expanding public school to prevent 280,000 teacher layoffs while keeping cops and firefighters on the job; investing in public infrastructure; increasing internet access and a new “Project Rebuild” which will put people to work rehabilitating homes; businesses and communities; leveraging private capital and scaling land banks and other public-private collaborations.
• Pathways Back to Work for Americans Looking for Jobs: extending unemployment insurance to prevent 5 million Americans looking for work from losing their benefits, A $4,000 tax credit to employers for hiring long-term unemployed workers, prohibiting employers from discriminating against unemployed workers when hiring and expanding job opportunities for low-income youth and adults.
• More Money in the Pockets of Every American Worker and Family: Cutting payroll taxes in half for 160 million workers next year and allowing more Americans to refinance their mortgages at today’s near 4 percent interest rates.
• Fully paid for as part of the President’s Long-Term Deficit Reduction Plan: additional deficit reduction necessary to pay for the Act and still meet its deficit target.

Source: The White House


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Markets

After a period of extensive damage assessment, stock markets are fluctuating in the absence of major news and a sense of direction. The squabbles on eurobonds injected some excitement and the end of civil war in Libya sutured a geopolitical wound at risk of infection. Markets seemed to have recovered last week, though the slew of weak economic data from the US and Europe led to further declines following a highly volatile August. Regional markets made small gains while haven investments like gold and Swiss Franc rallied as investors sought safety from the downturn.

Global Developments

Americas:

• Personal spending rose 0.8% mom in July with increases in the quasi-totality of products' categories,
  inverting the trend registered in June (-0.1%). The US Personal Consumption Expenditure core price index
  gained 0.2 ppt mom in July confirming that the biggest part of the US economy is holding up.
• July pending home sales registered a 1.3% decrease, following a 2.4% increase in June. The decrease affected 3 out of the 4 regions of the sample: only the West registered positive data for the house market.
  The S&P/Case-Shiller index of property values fell 4.5% yoy at a slower pace than May's 4.6% decline.
• Chicago PMI fell to 56.5 in August (Jul: 58.8) implying that business activity expanded at a slower pace, but
  manufacturing continues to outperform other sectors of the economy.
• July factory orders were positive: rising 2.4% mom and inverting the 0.8% drop in June, supported by a
  9.8% increase in orders for motor vehicles and parts, the largest one-month gain since Jan ‘03.
• In August, the US job market continues to stagnate with the jobless rate flat at 9.1% (2007: 4.6%) and non- farm payrolls unchanged at the weakest level since Sep 2010. Meanwhile, initial jobless claims fell to 409k
  in the week ended Aug 27 despite remaining quite elevated.
• Aug ISM survey fell to 50.6 (Jul: 50.9):

Europe:

• Germany's Q2 nominal GDP growth slowed to 3.6% yoy after expanding 4.9% in Q1, showing that even the safest and strongest Eurozone country is not completely immune to the sovereign debt crisis.
• European confidence plunged: the European Commission index that summarizes the sentiment of consumers, industry and services fell to 98.3 in Aug (Jul: 103). The Euro Area Business Climate indicator dropped as well to 0.07 in August from 0.44 in the previous month.
• Eurozone's August PMI was at a 2-year low of 49, below July's 50.4 and the flash estimate of 49.7 - as both output and new businesses recorded falling volumes.
• European inflation held steady at 2.5% in Aug with the ECB setting the target levels just below 2% over the medium term. Eurozone unemployment in July increased slightly to 10% (June: 9.9%) with youth unemployment rates stable at 20.5%. Ireland and Spain continued to see increases in jobless rate to 14.5% and 21.2% while joblessness dropped to 12.3% in Portugal and 3.7% in Austria, the lowest in the Eurozone.

Asia and Pacific:

• China's PMI recovered to 50.9 in Aug, following a string of declines including July's 29-month low of 50.7 though a
• India's GDP moderated to 7.7% yoy growth in Apr-Jun 2011 (Jan-Mar: 7.8%). The slow growth pace can be attributed to the 11 rate hikes in the past 18 months, leading to a slowdown in domestic consumption.
• Aug manufacturing PMI in India declined for the fourth straight month to 52.6 (Jul: 53.2), also recording a 29-month low, as price pressures and further monetary tightening continued to dampen sentiment.
• July industrial output expanded at a slow pace in South Korea and Japan as global concerns affected exports: Japan output rose 0.6% mom (Jun: 3.8%) while South Korea output grew 3.8% yoy (6.5%).
• South Korea's trade surplus recorded a slight decline to $ 821mn in Aug (Jul: $ 6.32bn) as imports were up 29.2% (25.0%) due to higher commodity prices (crude oil, raw materials) and exports rose 27.1% to USD 46.38bn (Jul 25.2%), with diverging trade patterns: exports to developing countries rose 17.1% as opposed to 10% growth to developed nations - exports to the EU fell 7%.
• Inflation touched a three-year high of 5.3% in August (Jul: 4.7%), also breaching the comfort zone of the Bank of Korea, on increase in food and transportation costs.

Bottom line:

With Bernanke's Jackson Hole speech delivering very little in terms of direction and as data from US continue to disappoint (increasing hopes for QE3), moderation seems to be the buzz word with global manufacturing cues from the developing nations (South Korea, Japan, China, India) also pointing to a slight weakness. This week will be interesting to watch - President Obama will present proposals to address unemployment on Sep 8; various central bank meetings: look out for Trichet's comments and as emerging markets try to balance growth alongside rising inflationary pressures.

Regional Developments

• Qatar inflation edged up to 1.9% yoy in July recording a 19 month high, although on a monthly basis it fell 0.3%, still a rather benign environment. Meanwhile, Saudi Arabia's inflation rate rose 4.86% in July, led by surge in rent and food prices.
• Credit growth to the private sector shows signs of recovery in July: in Saudi Arabia, credit to private sector rose 8.7% at annual rate to AED 831.5 bn, recording one of the highest growth rates since 2008; Qatar's credit to the private sector rose 17% at annual rate to QAR 213bn.
• Non-oil exports in Saudi Arabia rose 19% at annual rate to reach SAR 13.1bn in July while the imports dropped by 17% to SAR 28.9bn.

UAE Focus

• The UAE Central Bank has revealed that a new payment services will be added to the Payment and Settlement Systems (UAESWITCH), allowing debit cards to pay for purchases, bills and money transfer among individuals.
• The UAE PM issued two decrees to aid financial activity: one, to establish a federal credit information company as public joint company owned by the federal government and based in Abu Dhabi; two, to establish a government council for financial harmonization comprising representatives of local and federal government.
• The UAE Ministry of Economy has established a specific committee to follow up with all issues related to GCC custom and certificate of origin.
• The Ruler of Dubai issued a law amending DIFC Law No 9 of 2004 appointing a higher board at the DIFC that will be chaired by the DIFC President and members appointed by a decree. The decree issued has stated that Sk. Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai, has been appointed chairman of the board, and Abdul Aziz Al Ghurair as Deputy Chairman, Hussain Al Qemzi, Abdul Fattah Sharaf, Eisa Kazim, Abdullah Saeed Gobash and David Eldon as board members.
• Nakheel launched the first tranche of its long-delayed Dh4.8 billion ($1.3 billion) Islamic bond in line with its five-year restructuring plan.
• ADIA has restructured its external equities department, separating indexed funds from active funds as part of a more focused strategy.
• Dubai's foreign trade rose 26% at annual rate to AED 451bn in first five months of 2011.
• The EIBOR (all maturities) rose for first time in six months after consecutive drops in the week ended Aug
  25 - six months was at 1.68% compared to 1.67% in mid-Aug and 2.48% a year ago.
• Dirham future contract for one month reached its lowest level in the past 15 years reflecting a high demand
  for dirhams and lack of liquidity for dollar futures.
• Data released by VISA has revealed that cash withdrawals in the UAE is 10 times higher than purchases -
  cash withdrawals amounted to AED 31.66bn while purchases were at AED 3.44bn in 1Q2011.

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Markets

As soon as the stock markets had regained some stability and a holiday mood prevailed, German GDP data were a cold shower. This was followed by a dramatic slide towards the end of the week, with recession fears weighing high on investors' mind. Regional markets were mostly down, with Oman and Qatar closing a tad above a week ago; Saudi market fell the most in two weeks when it opened yesterday. The Chinese Yuan rose to its highest ever against the greenback as the PBoC set a fifth straight record-low dollar/Yuan reference exchange rate while the Swiss Franc continued to rise desspite curbs by the SNB and the Yen's rise adds pressure on Japanese exporters. Demand for the safest assets sent the price of gold closer to $1900 per oz.

Markets

Volatility is king and mood swings have produced a roller-coaster of most stock markets indices. The US downgrade has been largely discounted in asset prices and no longer the critical factor; rather, recession fears predominate and drive investor strategies. Heightened risk aversion is the dominant factor and is not going to disappear for a while. Regional markets were mostly subdued and oil followed the gyrations of stocks, but has been mostly weak on expectation of an impending double-dip recession. The Swiss franc had been rallying amidst volatile markets, but fell on speculation that the Swiss National Bank might take further measures to weaken its currency. Gold price touched $1800 per oz last week, though retreated following a short rally in equities on Friday.

Markets

The US debt deal had temporarily lifted the markets’ mood, but increased probability of a double dip, the S&P US downgrade and the European debt/fiscal crisis caused the most severe global equity downturn since 2008, leaving almost no markets untouched. Finance ministers from the G7 major economic powers are holding emergency talks on how to calm the markets before they reopen on Monday. The regional markets are likely to see the impact hit this week - mirroring Saudi Arabia, which recorded the largest intra-day loss since last March on Saturday. Regional markets plummeted on opening today, with the DFM dipping close to 5% in early trading before paring losses and recording a 3.7% decline at close; both Abu Dhabi and Qatar's indices tumbled 2.5%. To make a comparison, DP World which is listed on Nasdaq Dubai shed 7.1% today and on the London Stock Exchange fell 14% during Thur-Fri last week. As the safe-haven demand continued to rise, both the Bank of Japan and Swiss National Bank took steps to halt currency appreciation while Asian currencies posted their biggest weekly decline since Nov, led by the Malaysian Ringgit and Indian rupee. Meanwhile, gold prices continued to surge.

Markets

The European deal on the new Greek plan and the changes in the EFSF and ESM have not allayed fears in the market which have resumed to the downward trend. Markets continued to remain volatile as the US continues to be in a stalemate regarding the debt ceiling debate so close to the Aug 2 deadline. Regional markets mirrored their global counterparts. The two uncertainties led to a weaker dollar, an all-time record high for the Swiss franc, drove up demand for the yen and caused a gold price rally, which rose to a high $1631.2 per oz.

Markets

The Greek bail-out resolution and stellar Q2 results from big firms like Apple led to an end-of-the week rally in most markets, but traders remain anxious with the tug of war between US lawmakers to find solutions to avert an unprecedented debt default on Aug 2. Upbeat global sentiment is likely to boost regional markets that were on the decline last week, mirroring Saudi's gain yesterday following the news about the liquidity support offered to Greece. The Euro rose to a two-week high against the dollar as investor confidence went up, but the rally has since faded. Both oil and gold prices were up last week, with oil hitting a 3-week high and gold surged past a historical $1600 an ounce mark.

The world economy has partially rebounded from the global financial crisis, though the recovery continues to be geographically unbalanced and a number of risks remain. The IMF’s World Economic Outlook update in June 2011 estimates 2010 global economic growth at 5.1%, bouncing back from a drop of 0.5% in the crisis-hit 2009. The unbalanced economic growth is evident as the emerging market economies have recovered and are growing at a faster pace than their advanced counterparts.

Markets

The contagion of the EU fiscal crisis reached Italy, the third largest sovereign bond market in the world. Stock markets are shaky and risk aversion rising. Regional markets were not immune to global events: all markets were down from a week ago. The euro dropped to a four-month low against the US$, before stabilising later. Oil prices remained volatile last week while gold surged on the US sovereign rating warnings.

Markets

The fluctuations driven by the negotiation over Greek rescue program have abated. With the dust settled, the attention has turned to the macroeconomic fundamentals, the lack of momentum, and the other fiscal crises in the US and Eurozone. Hence the new drop in stock markets after the end-June mini rally. Regional markets are in summer mood with minimal volumes, with investors remaining cautious ahead of Q2 earnings. A weaker dollar led to safe haven demand for commodities, including gold.

Markets

Equity markets got some respite due to strong US data and cheerful news from Greece especially the “voluntary rollover” accepted by French banks and the austerity program passage in Athens. The mini end of month rebound & reappearance of risk appetite does not alter the outlook much, which remains dominated by a downward trend. The euro surged on positive news from Greece while the pound dropped to a 16-month low against the euro. The Brazilian real is at a 12-year high against the dollar as foreign investors flock to the region, given its high interest rates. Oil rebounded after the IEA stock release effect waned, while gold seems to have topped for now.

When analysing the macroeconomic outlook for a country, productive government capital expenditures come at the top of the list of indicators that underscore its prospects and its potential. This criterion might be simplistic but is broadly accurate: economies that do not invest in infrastructure or let them decay obviously neglect their future, but also their present, because investments constitute the fundamental driver of the economic cycle. In short, the adequacy of infrastructure and their maintenance determine the success or failure of a country.

Markets

Equity markets got some respite from the confidence vote in Greece and the expectation that the new funds will be disbursed by the IMF and the EU. Nevertheless, European markets continued their decline for the eighth consecutive week while the Asian markets were up after Wen Jiabao’s comments on taming inflation boosted sentiment. Regional markets were mostly down - MSCI delaying their decision on Emerging Market status for UAE and Qatar led to a 1.8% decline in the DFM the day after - its biggest decline in four weeks. The euro continues to be dragged down by the Greek crisis while rising risk aversion boosted the dollar. Oil declined to a 4-month low of $104 a barrel as the IEA announced that it will release 60mn barrels of oil next month after Libya's supply disruption. Gold prices fell sharply as well and hit the lowest price in a month.

Markets

Equity markets continued to be troubled by weak data, Greece's debt worries and recent unrest over proposed austerity measures. Regional markets were mostly down, with the exception of UAE where traders are speculating a possible upgrade to emerging market status by the MSCI later this week. Euro continues to decline and yen slumped to a two-week low against the dollar. Oil prices declined; gold prices recovered on Friday after recording a sharp 1% decline last Monday.

Markets

Another week of poor performance in equity markets as investors mull over the extent of the global slowdown in the next quarters. Regionally, markets remained mixed while Saudi Arabian shares plunged to the lowest level since March on Sat, after a weak set of global data. The euro fell sharply from a 1-m high against the dollar; pound had dropped to 1-m low against the euro earlier last week after Moody's warned the UK could lose its top-tier credit rating if growth continued to slow. Oil prices fell on Fri after OPEC announced that Saudi Arabia pumped the most since 2008, reversing the spike occasioned by OPEC member disagreement.

Markets

Risk aversion was partially offset by the strong results of the US Treasury auction at the beginning of the week, but a spate of dismal data sunk Wall Street as investors dumped stocks and poured into Treasuries, driving benchmark yields to below 3.0% for the first time since Dec. Regional markets were mixed with UAE and Oman outperforming others; Saudi dipped by almost 2% on Sat, pulled down by petrochemicals. The dollar slipped on weak US data while optimism about Greece aid revived the euro which hit a four-week high. Commodities were volatile last week, with oil prices lower and gold gaining from its safe haven attribute.

Markets

Risk aversion is prevailing in most markets waiting for direction at macro level and on major policy fronts primarily fiscal, with the battle on the debt ceiling in the US and in Europe with sovereign crises which last week sunk the euro and the European bourses. Emerging markets meanwhile have rebounded, though regional markets have been down as weak Q1 results played on investor sentiment and led to a three-week low in Dubai volumes. The Yuan went past its previous peak (May 2nd) after the PBoC set a new level for the mid-point and commodity prices continued to rise, with gold surging to a three-week high on softer dollar.

Markets

Commodities markets remain a key to development in equity markets as large investors had set up strategies based on a double play hinging on continued global growth. Signs of slowdown in the world economy, the end of QE2 in June and the uncertainty over the handling of fiscal crises in Europe put in question the wisdom of those strategies. Regional markets were mixed with Egypt gaining the most last week as the dollar surged and the euro plunged towards the end of the week. Oil prices were volatile - crude futures fell after the IEA called for increased oil output to tackle the problem of high prices, coming close under the heels of a rally after the US Department of Energy announced that US crude stockpiles had failed to rise as expected in the week to May 13 - while gold prices closed higher at the end of the week.

Markets

Stock markets suffered after investment strategies focusing on rising commodity prices were severely hit after oil prices tumbled because of a dollar rally and data suggesting demand was slowing in the US and China, the world's biggest energy users. Oil has recovered since, but stock markets have been weak since last week. Among regional bourses, Qatar surged to a new one-month high on Wed on hopes of a possible index upgrade and Egyptian stocks rebounded on a report of USD debt relief worth USD 1bn for the country. The EUR gained some ground end of last week as expectations rose for an ECB raise while Asian currencies were weak. CNY recorded its sharpest weekly decline in two months as China raised bank reserve-requirement ratios; KRW dropped to a three-week low after Bank of Korea unexpectedly left interest rates unchanged.

Markets

After hitting multi-year record levels stock markets took a pause which not even the killing of Osama Bin Laden could interrupt. After a brief euphoria investors focused on fundamentals which hardly support bulls. Regional markets were down, with Dubai slipping to a three-week low with volumes at a 15-week low. The dollar rebound, euro continued to decline and CNY passed the 6.5 mark for the first time ever. Oil lost some ground after US inventories data showed robust build up and finished the week $16 lower on demand worries and a move by investors to slash commodities exposures. The same trend hit precious metals: gold declined in volatile trade while silver prices tumbled by more than 10% on Thurs, the biggest one-day drop since 1980.

Markets

Stock markets are at a three year high - shrugging concerns on macroeconomic outlook and fiscal uncertainty, cheering buoyant Q1 results in US; the concern remains mainly over the continuation of QE2 and loose monetary policy which was duly confirmed by the Fed and touted in the first interview by Bernanke. On the regional front, markets were mixed: UAE markets rose on strong Q1 earnings but dropped significantly on Thurs following the extension of when brokerages have to switch to the new DvP settlement system. While the dollar index touched three-year lows, both gold and silver broke records as oil closed at $125 per barrel.

Markets

Volatility has dominated trading. Global market suddenly awoke to the harsh reality of the fiscal crisis when S&P put the US public debt on negative outlook and Greek austerity plans failed convince investors. Regional markets were mixed, with DFM hitting a 19-week high on investor optimism while Qatar slipped as Q1 earnings failed to impress. Euro slid on fresh sovereign debt fears while yen benefits from safe haven effect (which is in itself rather worrying). Positive earnings reports led to a rebound in most markets, though not everybody is convinced by the optimistic mood. Meanwhile, gold broke the 1500 $/ounce barrier.

Markets

Global markets were weighed down by weak data. The G20 finance chiefs met last week, agreeing on greater coordination efforts and indicators for an early warning system. Regional markets were mixed; the UAE hit an 11-week high on bullish Q1 results and speculation that MSCI will upgrade the market to “emerging” status given the introduction of Delivery versus Payment. Dollar index hit a 16-month low as Fed officials backed its loose monetary policy – also helping gold rise higher to a record $1,479.01 an ounce. Meanwhile oil continues to gain in spite of the IEA & IMF warning that higher crude oil prices could erode demand and threaten global recovery.

Markets

Markets have regained ground as the effects of the Japan earthquake fade and the Middle East tensions are factored in. Regional markets are still mixed but valuations in most Gulf bourses are extremely attractive, with Dubai among the cheapest in the world in terms of fundamentals. Dollar hit a 15-month low last week while ECB’s hike pulled back the Euro from its 14-month high. Commodities continued to rally as the dollar weakened – oil prices hit a fresh 2-year peak of $124.84; gold rose to a record high above $1,470 per ounce; silver was at a 31-year high of $40.46 an ounce and tin hit a record high at $33k per tonne.

Markets

Markets cheered the US strong jobs report and China PMI data in a week that began with low liquidity - a symptom of market uncertainty caused by instability in the Middle East and the continued fall out from Japan's earthquake. Regional markets showed a mixed picture, with Egypt slowly gaining ground after last week's sharp dip. Dollar rose to a 3-month high against JPY while oil prices continued to climb on concerns of Libya oil supply interruptions, while gold edged down alongside a firm dollar.

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.

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.

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.

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.

Markets

Global equity and commodity markets continue to be adversely affected by the turmoil spreading across the Middle East. Regional market performance also remained subdued given the political tensions in the region. Swiss Franc and yen gained on safe haven buying while oil and gold prices continued to rise. However, assurances from Saudi Arabia and the IEA that global oil production would not be significantly affected by the recent turmoil helped oil prices to retreat from two-and-a-half-year highs.

Markets

Equity markets in advanced economies seem to have brushed aside Middle East (ME) tensions - world equities, measured by the MSCI All-Country World Index, hit more than 2-1/2 year highs. Meanwhile, the region continues to be adversely affected - Kuwait slumped to a 7-month low and Saudi Arabia was down 3.7%, the largest decline among regional markets. GBP hit a 5-month high on rate hike speculation while Europe’s debt worries and ME unrest fuelled the safe haven demand for the Swiss franc. Geopolitical fears continue to weigh on commodities as oil (Brent) was up to more than $102 a barrel and gold prices surged on safe haven buying.

Markets

Developed stock markets were mixed but emerging markets took a hit due to risk aversion spurred by the Egyptian crisis, monetary tightening in China and rotation in asset management. There is a feeling that stock market in EM have run their course for now, but this feeling has not involved regional which have seen some substantial rebound. Exchange rates were little changed with the euro a little weakened. Oil was marginally higher and gold essentially stable.

Markets

Solid growth and profits outweighed weak jobs data in the US and Asian markets were mostly up, in a week where global financial markets were on edge over the ongoing unrest in Egypt. Regional markets recovered from the sharp decline witnessed last Sunday, when the GCC markets (excluding Saudi) lost close to $ 10bn market cap. GBP surged to a 3-month high, while Trichet’s inflation comments led to a decline in the euro. Oil prices held above $102 and gold prices surged as well, both under pressure from Egypt’s crisis.

Markets

A mixed week for markets: a few disappointing Q4 earnings (e.g. Microsoft, Amazon) led to the largest one day-fall since Aug '10 in the US while Asian markets were boosted by strong Q4 results, except for India where markets were lower on the policy rate hike. Regional markets were mostly down on fears of contagion from Egypt's political and security turmoil across the MENA region. Optimism over the easing debt crisis in Eurozone has boosted the euro. The safe haven demand for the dollar and yen are back, and oil is near the $100 mark.

Markets

Markets were in pre-festive mood and trading was drifting in low volumes – even US macro data signaling move towards recovery failed to excite markets. In Europe there were mixed effects stemming from the support by the Chinese authorities and the downgrade of Portugal. KSA hit a 7-month peak after the 2011 budget was announced. The euro fell for a third-straight week against the USD and the yen on the rating downgrades. Oil closed at $90 on Fri – the highest in more than two years due to cold weather, sharply lower US inventories and the OPEC’s decision to keep oil output unchanged, while gold continued its rally.

Markets

Markets were relatively quiet this week, with the exception of Europe where the Moody’s action on Spain and Greece (placed on credit review for possible downgrade) and Ireland (downgraded by 5 notches) took its toll. Regional markets had an eventful week - Qatar stocks hit a new 26-month high (Tues) and DFM touched a 13-week low (Wed); compared to a week ago all markets bar Saudi closed at a lower level. The euro continued to fall against the dollar, while the pound fell after UK inflation and unemployment rose. Gold was volatile, closing lower compared to a week ago while oil prices are still hovering around the $87-90 band.

Markets

Markets are giving a warm reception to the US tax deal and made gains globally, although EM were on a softer tone. Regional markets were up, with Qatar benefitting the most after winning the World Cup bid. Higher US Treasury yields supported the dollar, while both oil and gold weakened.

Markets

Markets worldwide were hit by the Irish fiasco and the liquidity absorption measures in China but later in the week they recovered. Regional equities are mirroring emerging markets with Qatar stock in a celebration mood for the 2022 World Cup. A flight to safety is benefitting US Treasuries and the dollar, despite rebound of the euro and the yen, while oil and gold are again on the rise with oil closer to 90$/b.

Markets

Markets have been driven in opposite directions by the Irish bail out and some positive news on US jobs and German Ifo. However the net result is still negative. Regional markets also mirrored the global trend, with only the Abu Dhabi market registering a small 0.5% rise from last week. The euro came under renewed pressure with investor concerns on Portugal and Spain debt while oil and gold prices rose on renewed contagion worries.

Markets

A mixed week for markets worldwide: European markets are awaiting the decision on a possible Irish bailout plan by end of this week. The rise in Chinese bank reserve requirements weighed on investor confidence while TOPIX advanced on the weaker yen, closing above 10000 for the first time in 5 months. Regional markets were closed most of last week for Eid. The euro advanced last week on the expectation of the Irish bailout package while commodity prices (oil and gold) declined compared to a week ago on demand concerns.

Markets

China's equity market plunged 6.2% overnight on Friday in a lagged reaction to the data released on Thursday pointing to strong growth, but higher inflation. The markets are anticipating Chinese monetary tightening. In fact all other markets, except Japan, ended the week with substantial losses. This episode confirms that Chinese contribution to world liquidity, which is likely to be further squeezed, is a key factor in global equities. The dollar rebounded sharply bringing down gold prices. Energy commodities were generally weaker.

Markets

Equities markets have been driven by the reaction to the QE2 announced by the Fed. Regional markets were mostly up except Oman and the UAE, whose indices were weighed down by property stocks; the DFM index dropped almost 2.5% after hitting a six-month high on Monday. Commodities, primarily oil and gold, have rallied since the Fed’s announcement alongside a weak dollar, which hovers around its lowest level of the year.

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