Weekly Finance Bulletin 10th December 2012
Global indices were able to advance yet again for the week.
Starting with Asia, all major indices ended the week in positive territory. Most notably, China’s Shanghai composite raced to a 4.14% weekly close due to continued confidence that Beijing's incoming leaders will back the current fiscal and monetary stance.
Furthermore, comments from Li Daokui, China’s former economic adviser to the central bank, painted a much more upbeat note on the world’s 2nd largest economy. He expects economic growth to rise ‘relatively quickly’ next year, especially in the first half of the year, possibly surpassing the annual expected 8% growth rate.
European indices endured a topsy-turvy week. Greek banks are prepared to hand over their entire stock of Greek government bonds as part of the country's debt-haircut with an approx value of €15 billion. Greece aims to retire around €63 billion in debt owed to private creditors, a goal demanded by the country's bailout providers in return for fresh aid. The buyback must be completed by Dec. 12, a day ahead of a meeting of euro-zone finance ministers. Separately, the ECB hinted to an interest rate cut should economic recovery remain sluggish.
Stateside, The Labour Department said the U.S economy added 146,000 jobs in November, while the unemployment rate fell to 7.7% being the lowest since December 2008. However the consumer sentiment index for December showed a decline, falling to 74.5 from 82.7 as the S&P 500 found the momentum to test 1423 resistance.
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