Global markets started the week on an optimistic note, buoyed mainly by positive data releases which hinted at a slowly recovering economy.
However, the bright sentiment was stifled later on during the week as worries over Europe’s stability were reignited by political discord in Spain and Italy. Most equities markets, save for the US, ended negatively. Meanwhile, safe-haven bonds stood to gain as investors adopted a risk-off sentiment amid renewed concerns over the Euro-zone.
Upbeat corporate earnings news fuelled buying interest in the local equities market, breaching the 6,400 mark this week. Optimism on the country’s robust macroeconomic fundamentals further buoyed demand for local shares and drove liquidity into the local fixed income market resulting to higher prices of government securities.
Meanwhile, sideways trading was observed in the local currency market as earlier gains were countered by ensuing political turmoil in the Euro-zone that deterred risk-taking.