Weekly Market Monitor

In another strong week for equity markets the US S&P 500 index surged to a new record high. Data that showed US consumer sentiment at a six year high boosted stocks and helped the dollar to maintain its recent upward momentum. Indeed, the US dollar hit its highest level against a basket of currencies since 2010.

The Japanese stockmarket continued its extraordinary performance, reaching its highest level since December 2007. A weekly rise of 3.6% means the Nikkei index’s year-to-date return is now 45%. Yen depreciation continued as it fell to a four year low versus the US dollar.

As the dollar rose, the gold price headed in the opposite direction; falling by $90 over the week.

While macroeconomic data in the US was a mixed bag, data from the eurozone was generally gloomy last week. Most notably, Germany recorded growth of just 0.1% for the first quarter. However, stocks in Europe performed well and the Eurofirst 300 hit a five year high.

Equity market returns last week:

Source: Datastream

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