Mithril Asset management - Weekly Bulletin presented by Square Mile Financial Services
Finance News - Weekly Bulletin Market Roundup 23rd of July 2012
**We wish to point out that Mithril Asset Management, Mauritius has no affiliation whatsoever with Mithril Capital Management**
Global stock markets were generally up for the week with Asia and the US posting the strongest gains. Europe did its best, but retracted on a reality check from its long running debt crisis.
In anticipation of a conference call between euro zone finance ministers to discuss a bailout plan for Spain, Madrid saw its yields on 10 year bonds rise as high as 7.06%, above the 7% threshold of sustainability.
Indeed on that note, the outcome was positive for Spain, as expected. Ministers agreed to allow the Spanish government to borrow €100bln from euro zone sponsored rescue facilities to inject capital into its troubled banking sector.
From a US point of view, markets were glued to earnings. Given the market volatility from the last quarter, it is unsurprising that expectation was set low. There were some heavy weights that gave some end-of-week joy to Wall Street. Google saw its shares advance as 2nd quarter results topped estimates. Microsoft also saw upside, however reported a $6.2bln write down from its online services division.
Treasuries advanced and gold had a pull back as the macro environment pushed USD up against major currencies.
In the UK employment numbers improved thanks in large to the Olympics, which will commence this week.