Global Markets Review -16May2014

The US markets opened on a strong footing after a mixed performance the previous week. The strength on Wall Street was partly due to news of Chinese market reforms designed to increase liquidity, which helped offset concerns about the situation in Ukraine where Pro-Russian separatists in the Donetsk region of eastern Ukraine claim nearly 90 percent of voters in the region were in favor of self rule in a referendum held on Sunday, although the vote has been condemned as illegal by Kiev and Western governments. However, weaker than expected retail sales growth for the month of April and higher than expected increase in producers price index. The US markets closed the week (till Thursday) on a negative note ahead of the housing starts and consumer confidence data releases even as the jobless claims data came below estimates.

The European stocks too commenced the week on a weak note amid disappointing corporate earnings and lingering concerns about the conflict between Ukraine and pro-Russian separatists. As the week progressed, data for the Eurozone industrial production dropped in March, driven by declines in the output of the big four countries, raising concerns over the strength of the economic recovery. After a mixed set of news and events, the European markets closed on a negative note.

The Asian markets opened the week’s trade on a subdued note picked up steam in the middle of the weak with he Japanese, Hong Kong and South Korean markets all posting strong gains. With no major economic events lined up in the week, the markets moved on global cues.

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