Markets end difficult week in positive territory

On Monday European equities rose to fresh six-year highs, led by banks as the takeover of Dutch group ABN Amro returned to focus.

On Tuesday European equities fell as signs of robust economic growth in the euro zone and UK lifted concerns over inflation and rising interest rates.

On Wednesday European equities were lower as interest rate concerns dominated, while falling energy stocks, overshadowed the latest bid talk from the banking sector. Wall Street pressed into record territory as strong profits from JP Morgan lifted financial groups and offset weakness in the technology sector.

On Thursday European stocks fell sharply, with global interest rates the main focus of concern after strong Chinese growth raised fears of slowing demand if the country moves to cool its economy.

Oil and mining stocks were among the worst hit after Chinese premier Wen Jaibao said the country needed to take timely measures to prevent economic overheating following first quarter gross domestic product growth of 11.1 per cent. Such a measure could cool demand for oil and other raw materials.

On Friday European stocks climbed for the first time in three days after Alliance Boots Plc received a sweetened $21.3 billion offer and takeover speculation intensified in the banking and steel industries. National benchmarks gained in all 18 Western European markets.

This article was compiled by Valletta Fund Management Ltd, 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.