Monday, June 20, 2011

Market Brief (13-17 June 2011)

During the week under review, global stock market performance was mixed. US stocks closed higher on Friday, June 17, breaking a six-week long losing streak. An intensification of hopes for the resolution of the Greek debt crisis is attributed to the reversal of the trend. European markets performed well in spite of Greece’s economic woes, while Asian markets slumped further during the week under review on concerns that resolution to the European debt crisis is yet to emerge. China’s central bank raised reserve requirements following the rise in inflation. The slow pace of Japanese reconstruction contributed to the dismal performance of the Nikkei.

Similarly, African stock market performance was mixed. South African stocks fell by 1.6% to a three-month low after metal prices declined amid continuing uncertainties over Greek debt. Egypt’s EGX30 index rebounded to register a 0.7% gain over the period in spite of contractions in construction, oil, and telecommunications. These gains signify hopes that the ECB and Greece will resolve their differences over the weekend.

Read the brief