CMC Markets Weekly Report

Stocks pushed higher on Friday as traders spent most of the day balancing strong data on sales of new homes against earnings reports and news that Greece had requested an international bailout. The Dow was up 69.99 points or 0.63%, at 11,204.28. The S&P500 rose 8.61 points, or 0.71%, to 1,217.28, and the Nasdaq was 11.08 points, or 0.44% higher, at 2,530.15.

While Greece's financial troubles have been known for some time, it's government set the stage once again for early trading on Wall Street as it formally requested emergency international aid to help it handle its debt.

European markets closed higher on the Greek news. The FTSE 100 index in London rose 58.32 points, or 1%, while the DAX in Frankfurt rose 90.81 points, or 1.47%. The CAC-40 in Paris was 26.65 points, or 0.68%, higher, but by afternoon in New York, some of the optimism gave way to concern that Greece's financial woes might spread.

That and some earnings that disappointed investors tempered a strong report on sales of new single-family homes. The Commerce Department said that sales of new homes rose nearly 27 percent in March. A separate report on durable goods suggested manufacturers continued to fuel an economic recovery.

In Australia this week all markets were closed on Monday for Anzac Day while data flowing thereafter will include the producer price index for the 1st quarter on Tuesday. On Wednesday we will see the consumer price index number for the 1st quarter. Thursday will bring the conference board leading economic indicator for February and Friday sees the March private sector credit number.

On the local stock front, there'll be a few more quarterly production reports from the resource sector, while ANZ bank will report its interim profit on Thursday.

Also this week, Marine safety solutions provider Mobilarm Limited launches it's offer to raise $4 million through an Initial Public Offering (IPO). Through the IPO, Mobilarm intends to issue 20,000,000 shares at a price of 20 cents per share to raise $4,000,000. Post listing, the Company will have a pro forma market capitalisation of $32.1 million. Mobilarm's technology is already utilised by numerous civil maritime organisations, particularly in the offshore oil and gas sector. The company has also secured a US Navy defence contract for verification trials of its patented Personal Beacon Locator.

This week's US economic data includes the Dallas Fed activity index on Monday, the Case-Shiller house price index and the Conference Board consumer confidence measure on Tuesday. On Wednesday we will see the Richmond Fed activity index on Wednesday as well as a “rate decision” from the Fed. Thursday brings the Chicago Fed national activity index. Friday will be a big day in the US this week as the Chicago PMI and Michigan Uni consumer confidence numbers to be released, but more importantly the first estimate of first quarter GDP will be made. And of course the quarterly reporting season rolls on.

Attention will also be focused on US bonds next week in another round of auctions. The appetite for US bonds has increased this last week as an offset to European sovereign issues, with the ten-year yield having pulled back from the 4% mark to a more staid 3.78%. This week sees another US$178bn of Treasury bills and bonds up for grabs. Across the week we'll see US$11bn of five-year inflation-adjusted bonds issued, US$44bn of two-year notes, US$42bn of five-years and US$32bn of sevens. The last Treasury auction saw a very surprising leap in demand for threes and tens despite a previously clear trend of diminishing demand, particularly from foreigners.

Japan has a big day on Friday with its rate decision and release of industrial production, CPI and unemployment data.