Global markets: Weekly overview

12 January 2009

Global stock markets ended the first trading week of 2009 with slightly negative performances amid concerns about the state of the global economy. The US market retreated after companies cut profit forecasts and rising unemployment spurred fears that the recession is deepening. The decline on the US market dragged down European stocks, which declined for a third consecutive day on Friday. Asian stocks fell as well. As a result, US and Asian indexes closed the week from flat to down, while European markets managed to post minor gains over 2008 closing levels.

In the beginning of the first trading week, crude rose to a five-week high as Kuwait and Qatar indicated that they will implement supply cuts announced by OPEC in December 2008, the dispute between Russia and Ukraine reduced natural gas shipments to Europe and the conflict between the Israeli army and Hamas continued. Higher oil prices spurred a rally in Russian ADRs, which continued trading while the Russian stock exchanges were closed.

The Russian market opened higher on January 11, led by energy producers, after crude advanced and the country signed an accord to monitor gas shipments through Ukraine.

Source: Troika Dialog

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