Weekly international equity market review

World stock equity markets moved higher this week notwithstanding investors remain in two minds as to whether or not the worst of the credit crisis and its impact on real economic activity is now fully priced in.

Wall Street stocks rallied as financials lifted the markets higher notwithstanding that materials and energy stocks which have supported equity markets for much of the past few weeks, lagged following lower commodity prices in spite of strong results from industrial leaders. Investors managed to largely shrug aside another set of gloomy data on the US housing market. The Nasdaq Composite climbed by 0.87 per cent to close at the 2,426.10 level. Meanwhile the S&P 500 index was up by 0.80 per cent to 1,390.94 points while, the Dow Jones Industrial Average hiked by 0.54 per cent over the past week.

European equity markets wobbled this week after Credit Suisse unveiled unexpected substantial write downs along with its first quarterly loss in the past five years. Nevertheless, the European market closed the week in positive territory led by technology stocks, as Swedish telecom equipment maker Ericson roundly beat expectations with its earnings figures. The FTSE 100 recorded gains of 0.10 per cent to 6,089.40. The CAC-40 in Paris gained 0.66 per cent to 4,977.10 whilst Frankfurt's Xetra Dax 30 gained 1.33 per cent.

Japan's Nikkei Stock average rose 2.28 per cent with Mitsubishi UFJ Financial group and other banks surging on growing confidence that the worst of the credit crunch may well be over. Later on the week Asian investors finetuned their portfolios ahead of US interest rate decision by somewhat trimming their positions. The Shangai Composite index closed the week at the 25,755.35 level.

This article has been prepared by Bank of Valletta plc (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.