A week of ups and downs | Calamatta Cuschieri

Last week was characterised by see-sawing price action in most global stocks. By close of business on Friday like European stocks had the better of it, with Asia being mostly down and US stocks giving up ground after a spectacular run so far this year.

It was also a good week for the Continent’s single currency, with the Euro powering ahead against all its peers on a less-dovish ECB press conference where President Mario Draghi conceded inflation and growth were picking up, although still not as fast as the ECB wants.

The British pound was ogging its worst week since last August after whatever hope remained of a smooth Brexit was essentially dashed

The British pound was at the other end of the scale, logging its worst week since last August after whatever hope remained of a smooth Brexit was essentially dashed by a series of legal hurdles thrown up by the House of Lords.

You can’t win at everything though – Eurozone sovereign paper sold-off massively following the ECB press conference, and yields also popped into Friday’s close as unconfirmed reports of the ECB mulling an interest rate increase before QE is done hit the wires.

In the US, positive job data from both the ADP and the NFP reports have pushed market pricing for a March interest-rate hike to near 100%. The Federal Reserve is meeting next Tuesday and will announce the results of its meeting on Wednesday, 8pm local time.

In commodities, gold is having a bad spell as expectations of higher global interest rates dent appetite for the yellow metal. ‘Black gold’ – aka oil – was also under pressure. WTI crude slipped below $50 for the first time this year, as production from non-OPEC members ramped up and is now feeding into global supply. The International Energy Agency said last week it still predicts over-supply despite a high degree of adherence to the latest coordinated supply cut by OPEC members and some other countries.

President Park Geun-hye was ousted from office after a court ruling after being impeached in December on charges of corruption

The prize for political story of the week goes to South Korea, where President Park Geun-hye was ousted from office after a court ruling after being impeached in December on charges of corruption. The now-former President is risking jail time after millions of people took to the streets demanding an investigation into some of the country’s top business and political leaders. Barely a month ago, Samsung heir Lee Jae-yong was arrested in connection with the ongoing investigation.

This article was issued by Andrew Martinelli, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.