This Week In the Global Markets Oct 15-22



By: YOSEF TASTASSA  
Published: October 23rd 2010
in Economics » World

Illustration

The Toronto TSX Index is eventually stable during trading this week. Stocks dropped over 1% after the announcement of China's Central Bank of increasing the interest rates. On Wednesday and Thursday markets recovered and return to the level of 12,601.18 points, similar to last week’s closure.  

 

Saskatchewan Potassium is at the focus; Sinochem will not buy Potash Corp, but signed a three year supply agreement with Canpotex, which is owned by Mosaic, Agrium and Potash Corp.

 

Positive 3Q reports from New York, especially AT&T, Caterpillar and McDonalds, kept markets high despite concerns of a new recession.

 

Bernanke is mildly optimistic and foresees a slow positive growth despite a huge federal deficit of $1.294 trillion for fiscal year 2010.

 

The Dow Jones added 0.8% closing at 11,132.56 points. NASDAQ added 0.95%, only 21 points away from the 2,500 points psychological barrier.

 

Tiny Tel Aviv 25 Index again broke its record this week. Stocks went up and the Index reached its highest peak ever of 1,272.25 points. Positive reports from the financial and industrial sectors pushed the market highly up on Thursday. Energy sector is still at focus, high fluctuations and eyes 135 km west to Leviathan initial drilling results.

 

The S&P 500 kept steady this week as well. The Index is higher by nearly 1% to 1183.08 points.

 

China's markets slightly high despite the Central Bank’s surprising increase of interest rates by 0.25%. China's cooling economy pushed deeply down the commodities this week.

 

Japan – still weak macro economic data, concerns about the central bank's ability to help in recovering the state's economy.

 

Commodities - The gold finally stopped, withdrawing by no less than 3.7% to 1,322 US Dollars per OZ. Analysts’ wide opinion is that the precious metal market is over boosted for no reason. Natural gas dropped by 10% this week, low gas prices may make this winter much cheaper.

 

The crude oil went down by 1.21%, still high at 81.69 Dollars per barrel.

 

In the Foreign Exchange sector, the "Currency War" continues. High fluctuations of currencies, Australian and Canadian Dollars are still competing against their American cousin. The Canadian Dollar weakened against most currencies this week ending at 1.0259 CAD per USD. US Treasury is still pressuring China on its Yuan policy, hoping for a coming appreciation of the Chinese currency.

 

Jean Claude Trichet, the ECB Governor, is concerned about the strong Euro. Prof. Nouriel Roubini is saying that a strong Euro prevents PIIGS (Portugal, Ireland, Italy, Greece and Spain) economies from recovering, labor markets remain weak, deficit still high.

 

Data Accuracy: October 22nd end of market trading.

 

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