This week in the Global Markets Dec 6-10

Published: December 12th 2010
in Economics » Local

Market Data Illustration

This week in the markets was an excellent one, especially to those who invested in commodities. It was not the week of the gold and silver, but it definitely was the week of the "Industrial Metals". Copper, lead and zinc surged by over 4 per cent this week. When we look at the previous week performances, these three relatively cheap metals surges by nearly 10 per cent since the beginning of December. The best yield on the investors' money in any market.


Despite PIIGS and the European debt, the positive voice from the German Chancellor brought optimism to the continent, and as we can see the indexes throughout Europe were deep in the Green territory. The German DAX broke the 7,000 point psychological barrier amid strong industrial data and the German wish to add Poland to the EU.


Tel-Aviv doesn't stop surging. The "End of the year rally" has brought the TASE close to the summit of 1,300 points. Positive winds from Wall-Street supported by the Dual-Stocks may push the markets even further into the 1,350 points zone. Teva will be the focus after a 9 per-cent surge in Wall-Street in one week.


Bay Street did well for investors. The closure on Friday was nearly 13,240 points. The sectors that were the drivers behind the Green screens were again the Metal and Mining sector and the Health Care sector which surged on Friday by 2.86 and 1.19 per-cent respectively.


The markets in the US were positively influenced by the consumers' sentiment and the labor market. It is the second week that positive macro data are arriving from the US. They may support the continuing rally in the markets. 3,000 points in the NASDAQ is no longer just wishful thinking.


However, 151 banks were closed this year in the US, and housing prices keep falling all over the country. QE2 is still in doubt and Ben Bernanke does not have much more to do.


Asia will keep pushing the commodities and the energy sector. China may cool the boiling economy and the rising inflation in the country by raising again the interest rates. Positive industrial data from China may push the cheap metals to new peaks.


Data Accuracy: December 10th, end of trading day.

Related articles: (TASE, TSX, NASDAQ, )

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