This Week in the Global Markets Dec 13-17



By: YOSEF TASTASSA  
Published: December 19th 2010
in Economics » Local

Market Data Illustration

Many of us expected to see the TSX Index touching the imaginary peak of 14,000 points. The Index wasn't that far from the peak but cold winds from Europe chilled the markets in North America. The TSX Index closure on Bay Street was 13,201.46 points, 38 points lower than the previous week closure.

 

The US markets kept surging despite the European uncertainties. The NASDAQ won this week's "race" by surging nearly two per-cent. The Dow-Jones and the S&P 500 added 0.72 and 0.28 per-cent respectively.

 

Positive data keeps arriving from the United States, even Roubini sounds less pessimistic and he foresees slow growth in the markets. It seems that Ben Bernanke's QE2 plan is working; the consumption and the production are accelerating slowly. The real estate sector and the labor market are still slow. Alan Greenspan, the former Federal Reserve Governor is optimistic and he expects a growth of 3.5 per cent in the US next year.

 

Asia keeps growing. India and China have decided to increase the economic collaboration. Their goal is to reach $100 billion of mutual trading by 2015. Both countries are expected to grow et a pace of nearly 10 per cent per annum in the coming years.

 

Tel-Aviv is again over 1,300 points. The strong Israeli macro data supported the markets this week as well. The energy sector in the Jewish state is under tremendous political and economic pressure. Stocks will probably continue their roller coaster behavior.

 

The Canadian dollar weakened this week against most world currencies. A weak Canadian dollar is good for the local economy especially for exporters who have to compete with the low Asian wages.

 

The metals withdrew from their peak prices this week amid the chilling measures taken by China's Central Bank to cool the economy. According to expert in the metal sector the expected prices in 2011 are much higher than the current prices.

 

Moody's rating agency degraded Ireland by five levels. The agency is not satisfied with the current situation in the country and with the way the Irish government intends to deal with country's enormous debts. Moody's is also not that positive about the US, it said that it may downgrade the perfect AAA US credit rating in the future.



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