Updated: 20th May 2013
In another strong week for equity markets the US S&P 500 index surged to a new record high. Data that showed US consumer sentiment at a six year high boosted stocks and helped the dollar to maintain its recent upward momentum. Indeed, the US dollar hit its highest level against a basket of currencies since 2010.
The Japanese stockmarket continued its extraordinary performance, reaching its highest level since December 2007. A weekly rise of 3.6% means the Nikkei index’s year-to-date return is now 45%. Yen depreciation continued as it fell to a four year low versus the US dollar.
As the dollar rose, the gold price headed in the opposite direction; falling by $90 over the week.
While macroeconomic data in the US was a mixed bag, data from the eurozone was generally gloomy last week. Most notably, Germany recorded growth of just 0.1% for the first quarter. However, stocks in Europe performed well and the Eurofirst 300 hit a five year high.
Important information: This update is intended to be for information purposes only.
Jonathan is the director and joint owner of the Pension Drawdown Company.
The Pension Drawdown Company specialises in providing advice on all aspects of pension drawdown and investments.