Indian Weekly Market Update July 24 2009
US markets rose emphatically during the week ended July 24, 2009, as 75 percent of the S&P 500 companies’ second-quarter results as of date surpassed market expectations. Furthermore, home sales rose 11 percent to an annual rate of 384,000 in June 2009. The data reinforced the emerging trend that the US housing market has bottomed out and is on the recovery path. Across the Atlantic, more than half of the European companies, which reported robust results for the second quarter, also exceeded the consensus forecast. Moreover, German business confidence rose for the fourth consecutive month in July, signaling recovery in the region’s largest economy. The array of positive news increased optimism among investors that the global economy was well on its way to recovery. Consequently, the Dow Jones Industrial Average (DJIA) and FTSE 100 rose 3.99 percent and 4.28 percent, respectively, for the week ended July 24, 2009.
Asian markets continued their strong positive trend during the week with all seven major indices closing with gains for the second consecutive week. Hang Seng, Hong Kong’s benchmark index (up 6.26 percent), was the top performer driven by optimistic regional and global cues. The index gained a robust 75 percent from its low in March 2009. Taiex index climbed just 1.78 percent, the lowest among its Asian peers during the week ended July 24, 2009. BSE Sensex rose 4.3 percent, led by strong quarterly results and easing of concerns over a weak monsoon.
The rupee appreciated 1.04 percent during the week due to considerable demand from foreign institutional investors (FIIs). Crude oil prices increased 7.1 percent to US$68.05 per barrel after rising 6.1 percent the previous week. Revival in the US economy strengthened hopes that fuel consumption would revive later this year.
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