Weekly Trading Update
13.04.12 Friday Morning
Europe has been quieter this week due in part to the shorter week. Sentix investor confidence was a lot worse than expected resulting from continued fears about the state of the Mediterranean countries. Both the Spanish finance and budget ministers were vocal in professing that austerity alone is not the way forward and that the country has to regain its competitiveness, thus adding a VAT tax would be a mistake. Greece continues to struggle with increasing unemployment but they have reached an agreement that the general election will take place on the 6th May. The bond swap has now reached 96.6% take up.
The ECB will restart its controversial government bond purchases rather than offer banks another round of LTRO’s as the sovereign debt crisis continues a survey of economist’s shows. Auctions this week were poor on the whole with Italians getting a full take up but worse yields and the German not attaining a full take up.
In Asia North Korea said in a very rare and embarrassing public admission of failure that its much hyped long-range rocket launch failed. This will be seen as a blow for the new leader who faces an international rebuke over the attempt. It does, however, raise concerns about the mind-set of the ‘Great Successor’.
China this morning announced its lowest growth rate in 3 years, 8.1% whilst one of its leading politicians was ejected from top rank following his wife’s arrest for suspected murder. South Korea and Japan released better news with the formers unemployment rate dropping whilst the latter saw the yen strengthen after it announced it will further pursue easing policy.
In equities, earnings season started with Alcoa beating expectations and Google announcing net profits up 61% in Q1 whilst Sony declared a profit warning and said it will cut ten thousand jobs worldwide. Vedanta Resources announced record quarterly production of lead, silver and aluminium but continues to struggle with iron ore production due to transport "bottlenecks" in Goa. International Power remains in talks with GDF Suez with regards to a proposed bid whilst Centamin Egypt saw Q1 gold output up 9%, slightly below estimates.
Open (Monday)
12923
Close (Thursday)
12984
Change
0.47%
High
12986
Low
12708
Open (Monday)
5664
Close (Thursday)
5716
Change
0.92%
High
5728
Low
5538
Open (Monday)
1644
Close (Thursday)
1677
Change
2.01%
High
1681
Low
1633
Open (Monday)
1.5869
Close (Thursday)
1.5963
Change
0.59%
High
1.5984
Low
1.5811
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