Weekly World Global Outlook – March 2005
WORLD GLOBAL OUTLOOK WORLD NEWS – STOCK MARKETS AND CURRENCIES Dollar falls after Koizumi remarks on reserves Japan’s finance ministry moved swiftly on Thursday to calm markets after the dollar tumbled and Treasury to calm markets after the dollar tumbled and Treasury yields spiked higher on comments made by Junichiro Koizumi, prime minister, about diversification of foreign currency reserves. Oil prices slip from record levels Profit taking contributed to crude oil futures halting their two-day record-breaking run on Thursday, with a report of a 13% fall in oil imports to China in the January-February period also pushing prices lower. Dollar wobbles on Japan diversification talk The US Dollar wobbled on Thursday as Junichiro Koizumi, the Japanese prime minister, appeared to hint that Tokyo was considering diversifying its reserves away from the greenback. Treasury yields gain on reserve fears Treasury yields peaked at a new seven-month high on Thursday after talk of Japan diversifying its foreign exchange reserves led investors to fear it could start selling its massive Treasury holdings. Wall Street mixed as oil prices eased Wall Street closed mixed on Thursday as oil prices eased and semiconductors rallied after profit at National Semiconductor beat forecasts. U.S. Trade Deficit Grew to $58.3 Billion in January The U.S. trade gap widened 4.5 percent in January to the second largest ever, as unequaled demand for consumer goods and autos outpaced record exports. The goods and services deficit of $58.3 billion in January followed a revised $55.7 billion in December, the Commerce Department said today in Washington. January’s deficit was second only to November’s $59.4 billion. U.S. Treasury Notes Fall After January Trade Deficit Widens U.S. 10-year Treasury notes fell, heading for their biggest weekly drop since May, as a wider trade deficit bolstered views about the potential for faster economic growth to spur inflation. LOCAL MARKET MSE down 6.48% Total equities traded LM777,794 Total Corp Bonds Lm191,794 Total Gov Stocks Lm991,013. BOV falls by 14.2% or 74c5mils on 101559 shares traded at a value of LM483,207. BOV traded at Lm5.23 and Lm4.50. HSBC falls 30cents on 14491 shares at Lm136,924. Lowest price of the week was LM9.26. Maltacom down 11cents and back at Lm1.50, on 60584 at Lm94188. MIA falls at Lm1.30 by 19c9 or 7.08%. 12,427 shares with a value of Lm16,537. The other fallers were Lombard 1 cent , IHI falls 3cents and FIMB 1c1. The best performer was GFSG up 7% or 7cents closing at LM1.07 on 200shares. Company announcement by BOV after Government issues press release on sale of shares of the Government of Malta and Banco di Sicilia. Maltacom announced that no election will be held for the appointment of directors as it only received three nominations. Year to date best performer HSBC 18.65% MSI up 18% MIA and FIMB up 15% Lombard up 11.74% Two losers so far GFSG -23% and Datatrack -15.25%.