Difficult week for equities
On Monday Japanese stocks gained, boosted by continued yen weakness and the recovery of some erstwhile favourites in the domestic sector. US stock-index futures advanced on speculation mergers and acquisitions will continue to drive equities...
On Monday Japanese stocks gained, boosted by continued yen weakness and the recovery of some erstwhile favourites in the domestic sector. US stock-index futures advanced on speculation mergers and acquisitions will continue to drive equities higher.
Disappointing news from brewer SABMiller on Tuesday that it had lost a key contract with Heineken helped drag the FTSE lower. European stocks fell for a second day on speculation that rising loan defaults in the US will hurt earnings at the region's banks.
After Wall Street tumbled over-night, on Wednesday, Asian and European bourses were hit hard as investors headed for the safer investment havens, such as government bonds. Credit markets also continued to weaken.
On Thursday in London the FTSE 100 surged amid a sharp rally in global equities. Strong overnight markets in Asia and a rally on Wall Street boosted sentiment and helped the FTSE 100 rise 100 points at 6,101.4.
European stocks rallied for the first time in four days after takeovers accelerated and US financial companies offered reassurance a sub prime loan crisis won't spread.
European stocks rebounded on Friday after a report showed industrial production in the US rose at the highest rate last month since November 2005. Japanese stocks fell, hit by dollar weakness against the yen and a sharp fall in the banking sector.
This article was compiled by Valletta Fund Management Limited, a member of the BOV Group. Valletta Fund Management, The Mall Offices, Level 6, The Mall, Floriana VLT 16. Freephone: 8007-2344. E-mail: infovfm@vfm.com.mt. Website: www.vfm.com.mt. VFM is licensed by the MFSA.