Week mainly positive

On Monday stocks advanced in Europe for a seventh day and Asian markets climbed to the highest in two weeks as concern eased that losses from sub-prime loans will slow economic growth in the US.

On Tuesday European equities ended a seven-session rally, reflecting losses on Wall Street overnight as investors resorted to some profit-taking amid weak US housing data.

London equities came off a six-session recovery rally to open with losses, with high street banks lower on reports of further exposure to the US sub-prime lending crisis.

On Wednesday European stocks climbed and US index futures advanced on speculation the global credit debacle will be limited to the financial industry and won't spread to the broader economy. The Japanese stock market fell sharply after several days of calm, responding to the worst day on Wall Street in three weeks overnight.

On Thursday European equity markets rallied after Wall Street bounced strongly following comments from Federal Reserve chief Ben Bernanke that raised hopes of a US rate cut.

On Friday stocks rose in Europe and Asia before an announcement by President George W. Bush that may help US sub-prime borrowers keep their homes. Standard & Poor's 500 Index futures rallied.

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.