Weekly Market Monitor - 08 March 2010
Risk aversion eased somewhat during the week, leaving equity, credit and commodity markets higher by the market close on Friday. Greece remained a key focus of attention, but investors generally appeared reassured by a new set of austerity measures and the significant support given to the Greek government’s new high-yielding five-year bond issue, which proved heavily oversubscribed. Further positive news on the US economy also boosted sentiment, with robust service activity data and better-than-expected employment numbers helping markets to close the week solidly higher.
European equities delivered the strongest performances against this backdrop, with strong gains in Spain, the Netherlands, Italy, Germany and France, whilst the UK’s FTSE 100 ended the week on an 18-month high. Sterling, however, came under renewed pressure on continued concerns about a hung parliament and the risk that the resulting government would be unable to pass measures that are drastic enough to cut the deficit. The euro also weakened slightly against the dollar as the European Central Bank kept rates on hold, whilst interest rates were increased for the fourth time in Australia, helping to drive up the Australian dollar.
Equity market returns last week:
| Market and index | % change last week | Market and index | % change last week |
|---|---|---|---|
| US: Dow Jones | 2.33 | Italy: FTSE MIB | 5.74 |
| US: S&P 500 | 3.10 | Switzerland: SMI | 2.04 |
| US NASDAQ | 3.94 | Spain: IBEX 35 | 6.64 |
| MSCI Europe | 4.71 | Sweden: OMX | 5.35 |
| UK: FTSE All Share | 4.54 | Japan Nikkei | 2.40 |
| UK: FTSE 100 | 4.58 | MSCI Asia Pacific ex Japan | 2.48 |
| Germany: DAX | 4.98 | Hong Kong: Hang Seng | 0.87 |
| France: CAC 40 | 5.44 | Singapore Straits | 1.79 |
| Netherlands: All Share | 6.33 | MSCI China | 2.16 |
Source: Datastream
Important information:
This update is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Schroders has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Schroders has expressed its own views and opinions in this document and these may change. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions.
Issued by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA, which is authorised and regulated by the Financial Services Authority.