CMC Markets Weekly Report

The Past Week.

The Australian Stock Market was headed for good gains last week until Friday, when the NAB announced an $830 million provision for their portfolio of CDO's. This saw the ASX/S&P 200 sold off heavily on Friday along with the major financial stocks. However the ASX/S&P 200 managed a gain on the week of 2.6% or 130 points.

U.S. stocks were mixed for the week with a host of earnings announcements. The Dow Jones Industrial Average rose 21.41 points or 0.2% to close at 11,370.69 on Friday, and racked up a 1.1% loss for the week. The technology heavy Nasdaq Composite Index rose 30.42 points or 1.3% on Friday to close at 2,310.53. For the week it rose 1.2%. Meanwhile, the broader Standard & Poor's 500 Index rose 5.22 points or 0.4% to close at 1,257.76 on Friday for a 0.2% loss on the week.

US Crude Oil came off its highs during the week helping to push world stock markets higher.

The Week Ahead.

The main focus for the Australian Stock market this week will be whether there are any more provisions among the other major banks. The local market was beginning to feel that the worst of the credit crunch news was out and the NAB announcement will certainly put doubt in the minds of any potential buyers of Australian financial stocks. The main Economic Figures for Australia due out this week include Trade Balance, Retail Sales and New Homes Sales. All announced on Thursday. In the US they will be watching the latest Employment figures due to be released early Friday morning Sydney time. There have also been calls from the SEC Chairman and the President of the NY Federal Reserve in the US for greater regulation of Investment Banks. The reaction from Congress will be closely monitored by the markets.