The past week was mixed for share markets. US shares gained +1%, European shares rose +0.9% and Japanese shares rose +0.4%. Share prices were lifted by good economic and profit news. However, worries about Ukraine acted as a constraint, particularly as the week wore on. Chinese shares fell 0.5% and this weighed on some Asian markets. Australian shares also fell, down 1.3% with mining stocks slipping on the back of the falling iron ore price. In addition, talk of a tax hike pushed retailing stocks down by 2%. Bond yields fell, commodity prices were mixed and the A$ was little changed.
The value of the A$ was resilient in the face of talk of tax hikes which would dampen the outlook for Australia interest rates.
Please click here to read full update: Weekly Report – 22 May 2014