This Week in the Global Markets Nov 15-19



By: YOSEF TASTASSA  
Published: November 19th 2010
in Economics » World

Illustration

This week was very interesting in the markets and it ended with an impressive U-Turn. The colour red controlled the screens as it did two weeks before; it seemed that November 2010 will not be remembered as a good month after all.

 

We heard bad news from all over the world. The Irish economy is in bad shape. It pushed European markets down, and investors suffered from heavy losses. Finally Ireland accepted, under some conditions, help from the EU and the IMF. The Irish decision was a relief for Europe and the markets in the continent boosted a bit and reduced the damages of the last two weeks.

 

Portugal is on the focus. The country may be Europe's next problem. It seems that the country's debts and core economic problems are even worse than those in Ireland. Will the EU and the IMF help again? We'll have to wait and see.

 

In North America it was General Motors who made the comeback of the century. The corporation was completely paralyzed after the 2008 crisis, and this week it issued shares to the public. What an unbelievable story. The US labour markets show initial signs of stability.

 

In Canada it was the end of the long Potash saga. BHP Billiton from Australia withdrew its offer to buy the Saskatchewan Corporation. Potash started the saga with a value of $110 per share, and ended it with a higher value of $140 in.

 

Asia started with a negative sentiment in China amid fears of inflation. The Shanghai SE lost 10 per cent in four days. The hope came from Japan's industrial data that pushed up the markets in the country by three per cent this week.

 

In Israel it was the week of the energy sectors. Stocks fell by 10 per cent on Monday and surged by 15 per cent during the next two trading days. The sector is at the focus of economists, politicians and private investors who are struggling to find a reasonable solution for the state’s benefit and taxes. The saga will probably continue for a long time.

 

Finally, commodities and precious metals are facing high fluctuations. The market prices of gold and silver are very unstable, and shift from green to red with no explanations. Other metals suffered heavy losses this week.

 

Data Accuracy: November 19th, end of market trading.

 

Related articles: (global markets, weekly summary)



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