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Mithril Asset management - Weekly Bulletin presented by Square Mile Financial Services


Weekly Finance Bulletin 22nd of April 2013

Market Roundup:

Yet another mixed week for markets.

Asian markets were flat to positive, on the back of news that foreign direct investment into China 5.65% in March from a year earlier to total $12.4 billion. The gain was well above the 1.44% average increase in FDI over the January-March period.

Indeed Asian markets were able to end the week on a higher note from bargain hunting following a difficult start to the week. Again the focus was China, whose economic recovery fell below expectation for the first 3 months of 2013. At 7.7%, this disappointed markets wanting closer to 8%. A remarkable drop in the gold price also caused surprise for investors. More on this later.

For Europe, the trend was also mixed. Major indices followed a downward path on China GDP and gold but Spain was able to be a rare gainer later in the week after a strong public debt sale. The Treasury successfully sold €4.71 billion euros in government bonds at lower borrowing costs compared with previous offerings.

US markets suffered their worst weekly loss since November with the S&P500, DOW and Nasdaq all giving up over 2%. The week began with difficult manufacturing data. The Federal Reserve's Philly manufacturing index came in at 1.3 for April compared to 2.0 in March, falling short of expectations for a 3.0 reading. The numbers came days after a similar Fed index for New York State also failed to live up to market expectations and fuelled talk the U.S. central bank won't rush to dismantle stimulus programs that weaken the dollar to encourage investing, job creation and recovery.



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