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


Weekly Finance Bulletin 17th December 2012

Market Roundup:

Most stock market indices have a net positive week.

Starting with Asia, the area enjoyed decent gains, with only India’s SENSEX shedding 0.55%. Shanghai was the main benefactor soaring to 6% for the week. Chinese shares rose to lead Asian markets by a wide margin later in the week Friday as strong manufacturing data boosted confidence about an economic recovery in the world’s second largest economy. HSBC’s calculation of China’s PMI rose to 50.9 or a 14 month high.

Japan rose to add a further 2% this week, despite giving up gains on Friday. As it prepares itself for elections, the general consensus is that the main opposition party is expected to emerge victorious. Their support of looser monetary policy and a weaker Yen had helped Japanese markets to rally in recent weeks.

Europe laboured to a finish where all indices finished in the green. Piggy backing off favourable data from China, markets reacted positively as Euro-zone finance ministers approved the heavily-delayed release of financial aid to Greece on Thursday. The agreement comes after Greece this week completed a debt buyback that retired €31.8 billion worth of government debt, a requirement for the aid set by Greece's troika. Furthermore Finance ministers approved the release of a total of €49.1 billion in aid between now and March, with around €34.3 billion set to be disbursed ‘imminently’.

Stateside it was more of a mixed bag, as U.S. stocks ended the week flat as investors focussed on the lack of a federal government budget deal and ignored upbeat economic reports in the U.S. and China. Investor reaction was only muted as data from the Labour Department reported the cost of living fell in November. The 0.3% drop slightly exceeded the 0.2% expected decline.



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