Saturday 19 June 2010

ECRI leading index falls, markets rise

It is looking ever more likely that the US economy will slow. The ECRI's Weekly Leading Index fell to a 45-week low of 122.5 for the week ended 11 June from 123.0 in the prior week while the annualised growth rate declined to -5.7 percent from -3.7 percent a week earlier.

However, markets have stabilised recently, with the stock market going through its longest rally in 11 months, according to Bloomberg on Friday.

The MSCI World Index of stocks rose for the ninth day, the longest rally in 11 months, and Spanish bonds jumped on speculation efforts to contain Europe’s debt crisis will succeed. Treasuries fell, while gold climbed to a record. Oil reversed losses to rebound above $77 a barrel.

The global index increased 0.2 percent and extended its rally since June 7 to 7.1 percent. The Standard & Poor’s 500 Index rose 0.1 percent to 1,117.51, capping its biggest back-to- back weekly gain since November. The Stoxx Europe 600 Index climbed to a five-week high, while the euro traded near $1.24 after its biggest weekly gain since May 2009. Gold for August delivery rose 0.8 percent to $1,258.30 an ounce. Spain’s 10-year bond yield lost 18 basis points.

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