Weekly Market Review 31 st March 2014-4 th April 2014
Contents International Equity Markets GCC Equity Currencies Commodities Interest Rates
International Equity Markets U.S. Labor Department data showed that employers boosted payrolls by 192k in March, following an upwardly- revised 197k gain in February. The unemployment rate held at 6.7 percent, even as more people entered the workforce Technology and consumer shares saw profit booking, after benchmark indexes had climbed to records on a government report showing employers added to payrolls last month. European stocks climbed for the 3 rd week, to their highest since 2008, as merger and acquisition activity and positive U.S. payrolls and manufacturing data increased optimism European Central Bank kept benchmark rates unchanged as it gives further liquidity boost to the EURO economy Asian stocks rose as positive U.S. data pointed to a recovery from harsh winter weather and China promised mini stimulus by selling bonds worth $24bn to strengthen its railway network Nikkei 225 rose 2.5 % this week as the yen headed for its lowest since January. Stocks rose even after the Tankan index of sentiment among large manufacturers missed estimates and the national sales tax was raised to 8% from 5 %, the first increased since 1997. S&P 500 1865.09 7.47 0.40 0.91 DJI 16412.71 89.65 0.55-0.99 Nasdaq Comp 4127.73-28.03-0.67-1.17 Euro Stoxx 600 329.72 6.26 1.94 4.90 FTSE 100 6695.55 79.97 1.21-0.79 Dax 9695.77 108.58 1.13 1.50 CAC 40 4484.55 73.29 1.66 4.39 Nikkei 225 15063.77 367.74 2.50-7.53 Hang Seng 22510.08 444.55 2.01-3.42 Brazil - Bovespa 51081.78 1313.72 2.64-0.83 Russia - Micex 1382.41 38.29 2.85-8.09 BSE Sensex 22359.50 19.53 0.09 5.62 Shanghai Comp 2058.83 17.12 0.84-2.70 EURO Stoxx 1 year performance S&P- 1 year performance
GCC Equities Qatar s GDP growth in 2013 hits 6.5% beating forecasts as pick up in construction activity aids growth Deyaar Development s shareholders approve the 25% foreign ownership limit. UPP has postponed its meet regarding increase in Foreign ownership limit to this week JP Morgan Chase and Morgan Stanley have informally been signed for the EMAAR s retail and Mall s IPO DSI (Drake & Skull) board recommends not to pay dividends for 2013 Emirates Reit, UAE s first real-estate investment trust, increased its share sale to $175 million to accommodate investor demand. The IPO got oversubscribed over 3x with most bids coming in at lower end of the pricing ~ AED1.36 DAMAC Sukuk was issued at 4.97% below the indicative pricing of 5.31% Dubai 4592.47 154.12 3.47 36.28 Abu Dhabi 4959.95 59.09 1.21 15.61 Saudi Tadawul* 9549.10 86.12 0.91 11.87 Qatar Index 12049.10 486.23 4.21 16.08 Kuwait Price Index 7560.45-23.55-0.31 0.14 Oman MAM 30 6773.96-141.30-2.04-0.89 Bahrain All Share 1371.23 26.95 2.00 9.80 Egypt EGX 30 7745.01-347.37-4.29 14.19 Istanbul 100 Index 72582.86 3465.54 5.01 7.05 DFM Index 1 year performance Qatar Index 1 year performance
Currencies The dollar rose against the euro for 3 rd straight week, as FED s policy divergence with ECB outweighed conflicting commentary by U.S. officials and as jobs data failed to meet traders expectations The pound fell against most of its major counterparts this week amid signs that the U.K. economic recovery that has made the currency the best performer in the past 12 months is losing momentum The Brazilian real climbed the most in emerging markets, as the Brazilian central bank resumed auctions to extend maturities on swap contracts that supported the currency South Korea s won gained the most in at least 7 months this week amid capital inflows, while India s rupee retreated after the biggest quarterly advance since 2012 YUAN was little changed for the week as the Chinese government stepped up its support by announcing a mini stimulus to make the country s railway system more robust EUR / USD 1.3705-0.0047-0.34-0.28 GBP / USD 1.6575-0.0063-0.38 0.11 AUD / USD 0.9292 0.0045 0.49 4.21 USD / JPY 103.2900 0.4600-0.45 1.96 USD/ CHF 0.8921 0.0053-0.59 0.09 USD/ CAD 1.0981-0.0080 0.73-3.26 USD/ BRl 2.2358-0.0254 1.14 5.65 USD/ RUB 35.2722-0.4904 1.39-6.81 USD/ INR 60.0850 0.1950-0.32 2.85 USD/ CNY 6.2123-0.0002 0.00-2.54 DXY Index 80.42 0.25 0.31 0.48 EURO/USD 1 year movement Dollar Index 1 year movement
Commodities Gold futures jumped the most in three weeks to end at $1303.50/ounce after a government report showing U.S. job growth was less than expected triggered economic concerns, boosting demand for the metal as a store of value WTI and Brent both rose for a second day after U.S. employers increased payrolls in March, signaling fuel consumption may climb in the world s biggest oil-consuming country Wheat fell, capping the biggest weekly decline since January, on speculation that U.S. crops will get a boost from rain in the next week, easing drought conditions Coffee continued to rise as inventories on London s NYSE Liffe fell 23% and shipments from India may drop by ~10% as output declines Aluminum headed for the biggest weekly gain since November 2012 in London as orders to withdraw the metal from warehouses surged while producers curb output Gold spot 1303.64 8.37 0.65 8.13 Silver spot 19.96 0.13 0.68 2.55 Copper-CMX 302.25-1.90-0.62-10.71 Brent - ICE 106.72-1.35-1.25-3.68 WTI - Nymex 101.14-0.53-0.52 2.76 Wheat- CBOT 669.75-25.75-3.70 9.44 Corn- CBOT 501.75 9.75 1.98 16.62 Soybean- CBOT 1473.75 37.25 2.59 15.41 S&P GSCI Spot Index 645.19-5.48-0.84 2.04 Baltic Dry Index 1205.00-168.00-12.24-47.08 WTI 1 year chart Gold spot 1 year chart
Interest Rates Treasury notes with short term maturities rose for the first time in 3 weeks as speculation cooled that the FED may accelerate its unwind of monetary stimulus after a report showed U.S. employers added fewer jobs than forecast in March Spain s 5 year note yields fell below their American equivalents for the first time since 2007 past week as euro-area bonds surged on bets the European Central Bank will add more stimulus to the economy and as the divergence between monetary policies of the FED and ECB continue The Bank of England will raise its official bank rate to 0.75 percent from the current record-low 0.5% by the middle of 2015, according to the median forecast of economists surveyed by Bloomberg News India sold $2.7 billion of notes due between 2022 and 2043 today in the first sale for the fiscal year that began April 1. The government last borrowed on Feb. 7, when it raised 100 billion rupees. This led the existing securities to suffer and the yields spiked up The Brazilian central bank raised the benchmark Selic rate for the 9th consecutive time to combat inflation, increasing it by 25 basis points to 11 per cent, the same level as January 2012 USD- 1w Libor 0.12 0.0013 1.04-6.15 USD - 3m Libor 0.23-0.0038-1.61-6.70 USD - 6m Libor 0.33-0.0014-0.43-5.89 USD - 10yr 2.72-0.0001 0.00-10.15 AED-1m EIBOR 0.45-0.01-2.45-1.24 AED-3m EIBOR 0.78-0.01-1.44-3.87 AED-12m EIBOR 1.17 0.00 0.00-0.97 UK - 10yr 2.69-0.0380-1.40-11.12 Japan - 10yr 0.65 0.0220 3.51-12.55 U.S. 10 year generic bond yield 1 year performance JAPAN s 10 year generic yield 1 year performance
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