Global Weekly Report - International

International Markets – Weekly Report
May 28, 2010
Global Investment House Tel. + (965) 2295-1000 Website: Global Tower Fax. + (965) 2295-1299 www.globalinv.net Intersection of Shuhada Str. and Khalid Ibn Al-Waleed Str. P.O. Box: 28807 Safat, 13149 Kuwait

Energy/Currencies
US crude oil futures fell on Friday, ending May with their worst monthly

US ($) Oil - WTI (Spot) Oil - Brent (Spot) Gold/ounce

Close
73.20 73.31 1211.75 ▲ ▲ ▲

Weekly Y-T-D decline since December 2008, at the height of the financial crisis, as a Performance Performace downgrade of Spain's credit rating sparked further Euro zone worries and
3.83% 4.45% 3.11% -7.67% -6.33% 10.59%

prompted oil traders to seek less risky assets. On the New York Mercantile Exchange, July crude <CLN0> settled down 58 cents, or 0.78 percent, at US$73.97 a barrel, after trading from US$73.13 to US$75.72. Front-month crude futures fell US$12.18, or 14.1 percent, from April, their biggest monthly percentage loss since December 2008, when prices fell 18.1 percent from the previous month.

US crude oil imports in March fell 1.6 percent from a year earlier to 9.292mn barrels per day, the US Energy Information Administration said on Thursday. March imports were down 149,000 bpd from 9.441mn bpd a year earlier. Oil shipments from Saudi Arabia topped 1 million bpd for the first time since last September, reaching 1.149mn bpd in March. It was the highest level for Saudi imports since January 2009. US spot natural gas prices for June 1 moved higher on Friday for a fourth day, backed by steady storage buying and warm weather forecasts through midweek next week, which should mean more cooling demand, despite ongoing concerns about rising supplies. Gas for June 1 delivery at Henry Hub <NG-W-HH>, a key supply point in Louisiana, climbed 9 cents to US$4.31 per million British thermal units, but late morning deals slipped slightly to about flat with NYMEX from a 3-cent premium on Thursday. The current Hub average is above the May monthly index of US$4.27 and the year-ago price of US$3.49, but well below the US$11.85 mean on the same day in 2008.

Faisal Hasan, CFA Head of Research Tel: 2295-1270 fhasan@global.com.kw _____________________ Rasha I. Al-Huneidi Assistant Vice President Tel: 2295-1285 huneidi@global.com.kw _____________________ Mohannad Al-Doohan Assistant Financial Analyst Tel: 2295-1288 maldoohan@global.com.kw

U.S.
Orders for US manufactured durable goods rose by 2.9 percent in April, the largest rise in three months, the Commerce Department reported. The April gain in orders for durable goods, big-ticket items expected to last at least three years, was much stronger than the 1.3 percent increase that had been expected. For April, demand for transportation equipment, which accounts for more than one quarter of total durable goods orders, jumped by 16.1 percent. Excluding transportation, durable goods orders in April fell by 1.0 percent. US new-home sales rose 14.8 percent in April to their highest level since May 2008, the Commerce Department estimated. The increase in new-home sales to a seasonally adjusted annual rate of 504,000 was well above the 425,000

43 ▲ 5. The more rapid growth came as industrial production saw a faster recovery than was first thought. The number of mortgage applications in the US rose last week.DAX France .15% -0.21% 0. the highest since November.4 percent expansion seen in the final quarter of 2009. Prices of US single-family homes rose in March for the first time since November.79% -0.19% -10.946. The economy racked up 0.2 percent initial estimate. following a 0.6 percent to a 5.136. Nationwide Building Society.60bn more than they borrowed in the year ending April 4. the Swindon England-based company said in a statement.8 percent compared to March 2009. The Mortgage Bankers Association’s (MBA) index increased 3.9 percent in the first three months of the year. Nationwide’s residential mortgage customers repaid GPB3.Nasdaq Comp. Analysts polled by Reuters had expected April sales to increase 5. The UK economy grew faster than originally thought in the first quarter of this year.43% -14.30% Europe Industrial new orders in the 16-nation Euro zone jumped 5.35mn units in March. The Chicago Fed National Activity Index rose to 0.FTSE 100 Germany .04 ▲ 1.5 percent monthly rise and a 15 percent annual increase. Home prices dropped 1. Gross fixed capital formation increased 1.56% 1. the agency said. the Federal Housing Finance Agency (FHFA) said. growing by 1.13 points in March.26% 0.41 ▲ Weekly Y-T-D Performance Performace -0. Its refinancing gauge climbed 15 percent. A leading survey shows that German consumer confidence has dropped amid ongoing concerns about the weak euro and the highly unpopular rescue Index England .2 percent in March compared to the previous month.Dollar 1. Sales of previously owned US homes rose more than expected in April to a five-month high as buyers rushed to close contracts before the expiry of a homebuyer tax credit. said gross residential mortgage lending dropped 37 percent to GPB12bn in the last fiscal year as housing transactions slumped.06 ▲ Weekly Y-T-D Performance Performace 2. The FHFA's house price index rose a seasonally adjusted 0.CAC 40 Close 5. Orders rose 19. However.2 percent. British house prices will be “flat” this year. A reading above zero indicates the economy is growing above trend.DJ Average US .63 ▼ 2. New-home sales are up 47.5 percent in the first week since the end of a government incentive.188.65mn-unit pace from the previously reported 5. the UK’s largest customer-owned lender.Global Weekly Report . while the purchase index fell 9. its strongest rate since the third quarter of last year. but fell in the first quarter. led by a rebound in refinancing as long-term borrowing costs dropped below 5 percent for the first time in two months.S&P500 Close 10.36mn-unit pace in March.29 points from 0.9 percent in the week ended May 7.16% -2. A measure of national economic activity last month rose to its highest level since December 2006.3 percent growth in the first quarter.53% -2. New-home sales in March were revised to a 439.000.089.26% -2.43% 0.257.International Close Dollar .46% -4.515.Sterling Pound Yen . Sales were up 22. the agency said. the European Union statistics agency Eurostat reported.2 percent dip.48% 2. but still appeared hamstrung by a combination of poor weather and the rise in VAT in January. the three-month moving average showed there was some economic slack.01% 2. The National Association of Realtors said sales rose 7.77mn units.5 percent. which was previously reported as a 0.3 percent after falling by a revised 0.70% .65% pace expected by economists surveyed by Market Watch.33% -10. but less than the 0.4497 90.000 level compared with the previous estimate of 411. higher than the 0.4 percent. the Washington-based group said today. suggesting subdued inflationary pressure from economic activity over the coming year.Euro Dollar . the Chicago Federal Reserve said. Index US .44 ▼ ▲ ▲ Weekly Y-T-D Performance Performace -2.2265 1.6 percent month-over-month to an annual rate of 5.8 percent in the 12 months to April. US . the Chicago Fed said.5 percent fall in the fourth quarter.8 percent compared with a year ago. The March data far exceeded forecasts for a 2.18 ▲ 3. from a slightly upwardly revised 5.

At the April 30 meeting. In March.52 ▼ Some Bank of Japan (BOJ) board members were concerned about side Weekly Y-T-D effects of the bank's easing in March. They also agreed to enhance dialogue and coordination in macroeconomic policies. Germany's GfK institute said that consumers' confidence. using exactly the same wording as in April. the BOJ said it would consider a new scheme to help bolster growth. however.22% -7.9 percent.5 percent economic growth for this fiscal.9 points. “Price continues to be a matter of deep concern. released last week.” he said. trade and investment and the stability and reform of the financial market. India’s inflation in April was estimated at 9.762. "The economy has picked up steadily.Nikkei 225 Japan . Emerging Markets China The two-day China-US Strategic and Economic Dialogue ended Tuesday with the signing of 26 agreements and both countries agreeing to deepen cooperation to strengthen and reinforce the global economic recovery. German companies.2bn the previous month.1 percent. China said it would introduce financial and monetary policies and undergo structural reforms that would encourage consumption which is expected to play a more important part in the economic growth. Consensus was reached in many issues involving financial." but its growth momentum is "only weakly selfsustaining.6 points in May to 3. Index Japan . the minutes showed. while leaving policy rates unchanged at 0.7bn in April from JPY666. The government attaches highest priority to containing inflation so there is no distress to the common man.9bn reached in March. has dropped 18. suggesting it remains vigilant about potential downside risks such as the European debt crisis.Global Weekly Report . The unchanged assessment comes despite a recent series of brighter economic indicators. as domestic demand remains weak and the country's export-oriented economy is exposed to overseas shocks such as Europe's fiscal problems. Japan The Japanese government kept its view of the economy unchanged in May despite signs of a stronger recovery. The Japanese Merchandise Trade Balance Total fell to JPY730bn in April compared to JPY948.133% -3. A few also said the March easing measure could harm smooth financial intermediation if lower interest rates squeeze banks' profits.International plan for Greece. which increased significantly in April.20% market players' confidence in the availability of funds had weakened." the Cabinet Office's monthly economic report said. India Prime Minister Manmohan Singh said inflation would come down to 5-6 percent by December and projected an 8. the BOJ doubled the amount of funds in a fixed-rate three-month fund operation.43% -0. currency structure reforms. have viewed the weaker euro more positively as it strengthens the exports. according to minutes of its April 30 Performance Performace meeting. The Adjusted Merchandise Trade Balance grew to JPY767. and the Bank of Japan upgraded its monthly economic assessment for effectively the second time in a row. The government's cautious view is partly due to uncertainty over whether Japan can maintain its growth momentum in the coming quarters. the central bank said it would set up a loan scheme targeting growth industries. A few members said trade in money markets had contracted and -0.Topix Close 9. showed an accelerating annualized growth rate of 4.6 . The institute said Germans fear that the Greek rescue packages and the weakening Euro could hamper their economy's recovery.98 ▼ 878. Gross Domestic Product data for the January-March period. At the subsequent meeting.

78 ▲ 16.99 ▲ 1.946.43% -9.06 ▲ 9.IRTS Close 19.521.622.56% -3.BSE Pakistan . has emerged as the latest worry for policy makers mirroring signs that the specter of price rise have lengthened across the broader economy.Global Weekly Report .55% 2.40 ▲ percent.54% -3.49% 2. which has reached nearly 7 percent.Hang Seng Singapore .71 ▲ 2.KOSPI India .766.159.63% -5.45% -3.45% 1.45 ▲ 1. Inflation in manufactured products.65% 4.69% Index Honk Kong .362.70 ▲ 1.80% 3.41% 2.15 ▼ 61.309.BVSP Mexico . as food prices continued to remain at elevated levels.45% -20.739. .INMX China .KSE Brazil .SSE180 Russia .863.78% -9.43% 1.66% -5.09 ▲ 6.13% 1.International Weekly Y-T-D Performance Performace 1.68% -4.Straits Time Korea .

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