Local markets
The ASX 200 rallied for a seventh consecutive
day yesterday to +3.7 per cent above the close
of Friday 26 February The last time we have
seen seven positive days in a row was in mid-
July 2009.
Equities have been supported by stronger
economic sentiment following the narrowing of
the nation’s trade deficit by more than expected.
Resource stocks have been the main driver of
the strong market performance, on the back of
soaring commodity prices.
Local markets
The ASX 200 rallied for a seventh consecutive
day yesterday to +3.7 per cent above the close
of Friday 26 February The last time we have
seen seven positive days in a row was in mid-
July 2009.
Equities have been supported by stronger
economic sentiment following the narrowing of
the nation’s trade deficit by more than expected.
Resource stocks have been the main driver of
the strong market performance, on the back of
soaring commodity prices.
Global markets
Equity markets
Markets around the world were buoyed by better
than expected US unemployment figures and
reduced fears of Greek default, with European
markets the greatest beneficiaries of the
reduced threat to the Euro.
The French CAC 40 (+5.3 per cent) and the
German DAX (+5.0 per cent) posted strong
gains. Gains were also felt across the Atlantic
with the US S&P 500 (+3.3 per cent) rising for a
sixth straight day.
The reassuring economic news last week
pushed volatility to a near 21-month low. The
VIX index, which tracks volatility on the US
market and is known as the “fear” index, fell to
its lowest level since May 2008.
Commodities
Industrial metals finished the week with healthy
gains, with all of Aluminium (+4.5 per cent),
Copper (+3.7 per cent) and Nickel (+5.3 per
cent) rising in value.
Wheat, on the other hand, fell by 4.7 per cent
after China, the world’s biggest grain consumer,
announced it would keep large stockpiles to
ensure food security.
Currencies
The Australian dollar (AUD) strengthened over
the week to be trading at around US$0.91,
following a string of positive currency sensitive
announcements.
On a local front, the 25 basis point interest rate
rise and the better than expected fourth quarter
GDP result benefited the AUD.
Whilst on an international front, the positive US
employment data, the announcement of
Greece’s deficit-reduction plans and China’s
indications of a prolonged loose monetary policy
benefited the AUD.
