Weekly Market Monitor - 31 August 2010
Global equities had a choppy week as gloomy reports on US GDP and housing offset more positive news from corporate earnings and an increase in activity in mergers and acquisitions. The S&P 500 fell 0.7%, while the pan-European FTSE Eurofirst 300 shed a more modest 0.3%. The Nikkei 225 suffered a third straight week of losses, shedding 2.0%.
In bond markets, US housing data and disappointing durable goods orders helped to push government bond yields lower. The benchmark 10-year US yield sank below 2.5% to its lowest level this year, while the 10-year German and UK yields hit their lowest levels on record.
In commodities, oil ended the week above $75/barrel after trading near the $72/barrel for most of the week on improved demand forecasts. Copper also rallied over the week.
Equity market returns last week:
| Market and index | % change last week | Market and index | % change last week |
|---|---|---|---|
| MSCI World | -0.54 | Netherlands: All Share | -0.27 |
| MSCI EM | -1.64 | Italy: FTSE MIB | -0.27 |
| US: Dow Jones | -0.62 | Switzerland: SMI | -0.04 |
| US: S&P 500 | -0.66 | Spain: IBEX 35 | 0.53 |
| US NASDAQ | -1.20 | Sweden: OMX | -0.17 |
| MSCI Europe | -0.23 | Japan Nikkei | -2.05 |
| UK: FTSE All Share | 0.12 | MSCI Asia Pacific ex Japan | -1.71 |
| UK: FTSE 100 | 0.12 | Hong Kong: Hang Seng | -1.83 |
| Germany: DAX | -0.90 | Singapore Straits | 0.33 |
| France: CAC 40 | -0.53 | MSCI China | -2.56 |
Source: Datastream 31/08/2010
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