EURO stocks gained last week, lead by cyclicals

Global equity markets recorded another good week with the Euro STOXX 50 leading the way gaining 3.8 percent. The cyclical sectors were again the leaders with metals & minerals (non-energy minerals), Producer Manufacturing and Finance gaining 4.1 percent, 3.9 percent and 4.4  percent respectively. EU financials gained ground on the back of LTRO. The Athens stock exchange sparked a significant rally, sending the Greek index 12 percent higher. The EU banking sector will continue to be in focus as we approach the European Banking Authority’s deadline on January 21 regarding capital ratios, etc.The American reporting season showed mixed results with the top four banks giving a hopeful guidance on the US economy for 2012. Big non-financial names are reporting this week. On the consumer staples side, Procter & Gamble and Johnson & Johnson are both reporting, the tech side is represented by Apple and Siemens, and energy is represented by ConocoPhillips and Chevron which should report strong earnings on high oil prices. Apple followers will be anxious to analyse IPhone 4s sales and Christmas sales.




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