The week in review:
On Tuesday, early gains were erased by midday losses when Spain’s prime minister said in a press conference that a request for aid was not imminent. Markets were expecting a request from Spain for a financial bailout from the euro zone, which is seen as a crucial step in stabilizing the debt crisis there.
In the U.S, the CoreLogic house price index for August rose 4.6 per cent year-over-year. That marked the biggest increase in home prices since July 2006 and is consistent with several recent reports showing positive data in U.S. housing.
The Australian central bank cut the country’s key interest rate by a quarter of a percentage point, partly in response to slowing activity in China, their biggest trade partner.
On Wednesday, the US announced better than expected job and non-manufacturing figures. The ADP (Automatic Data Processing) report on private sector jobs showed a job increase of 162,000 in September. The ISM (institute for supply management) report on non-manufacturing rose to 55.1 in September. A reading of over 50 means economic expansion.
A report from the U.S. energy department showed that the country’s crude oil output is at a 15-year high. This led to a drop of $3.75 in crude oil price to a two month low of $88.14 (U.S.) a barrel.
Markets rallied on Thursday as investors responded to Wednesday evening’s U.S. presidential debate. The consensus view amongst political observers was that Romney beat Obama in their first debate. Romney is seen as Wall Street’s preferred candidate due to his perceived pro-business agenda.
Markets were largely unchanged on Friday.
Market Recap (as of October 5, 2012)
- The TSX closed at 12419, up 0.83% over the past week. YTD the TSX is up 3.88%.
- The DOW closed at 13610, up 1.29% over the past week.YTD the DOW is up 11.39%.
- The S&P closed at 1461, up 1.39% over the past week.YTD the S&P is up 16.14%.
- The Nasdaq closed at 3136, up 0.64% over the past week.YTD the Nasdaq is up 20.38%.
- Gold closed at 1783, up 0.51% over the past week.YTD gold is up 13.93%.
- Oil closed at 91.5, down -2.61% over the past week.YTD oil is down -7.48%.
- The USD/CAD closed at 0.9788, down -0.45% over the past week.YTD the USD/CAD is down -0.10%.
Sources: Advisor.ca, Financial Post