Weekly market review
Week ending 15th April 2016
European equities capped a five-day rally with the Eurostoxx 600 rising 3.4%. The UK stock market hit a 2016-high of 6,365, before closing the week up 2.32%, helped along by an unexpected Chinese exports surge, which triggered a rally in mining stocks. US stock markets eked out a modest weekly gain, rising 1.7%, as investors appeared to anticipate slim pickings during this quarter’s earnings season and lukewarm retail sales. The Chinese Shanghai Index rose 3.1% as investors expressed positive sentiment over economic growth.
The UK 10-year government bond yield closed slightly up for the week at 1.414, while the the US 10-year Treasury bond yield rose to 1.75%. German 10-year Bund yields ended the week up at 0.13% boosted by upwardly revised inflation, after breaking a new 12 month low on Monday. Japan’s 10-year yield fell to –0.115%, and the majority of its government bonds now trade below zero.
The pound closed slightly up at 1.42052 against the US dollar, which held above its 6-month low, with a modest gain of 0.5% amid mixed economic data. With nearly two weeks of trading in the narrow $1.13-1.14 band, the Euro continued to stay in range to end the week at $1.13. The Japanese yen retraced some of this month’s rally, depreciating 1.1% against the US dollar, as speculation of direct monetary policy-induced foreign exchange intervention mounts.
West Texas Intermediate crude oil climbed to a fresh 2016 high, ending the week up 1.6% at $40.36, as US crude oil production continued to decline, albeit slowly. Investors again were speculating over an April 17th Saudi-Russian meeting in which these two major world suppliers may discuss freezing output.
Source: Goldman Sachs Asset Management. Adapted by FundCalibre. This material is for information purposes only and does not in any way constitute financial advice.
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