Against all expectations, stock markets around the world managed to extend their winning streak and close up for the 5th week in a row. It was a choppy week until Friday when US markets pushed hard to close at their highs of the week.

Financials were on fire, lifting global markets with them. Positive headlines hit investors in waves, just when it looked like the recent rally off the February lows was running out of steam. In the UK, Barclays finally closed out the sale of its iShares, with the £3bn fee coming in around average estimates. Some had thought it could go for much more, but there seems to be a general relief that the deal has gone through full stop. Wells Fargo added fuel to the fire by coming in with results that topped analysts’ estimates. Wells closed up nearly a quarter on the day, with most of the UK and US financials up by around 10% on Friday.

Another catalyst for the buying frenzy was the New York Times reporting that all the 19 examined US banks have passed the treasury stress test. The exact results are going to be delayed until after earnings season, but the general relief that there will be no major surprises has flushed traders with confidence.

US jobless figures were dismal, but slightly less dismal than before. The drop in total claims was less than expected, though the continuing jobless claims continues to rise. If there has been a consistent barometer of economic sentiment this year, it is oil and true to form, crude prices closed the week at $52 after dipping below $48 at one point.

The bank of England rate statement was a bit of a non event, as they kept rates on hold as largely expected. The Euro was one of the weaker currencies last week, losing ground against the dollar and falling in value against the pound for the third week in a row.

The coming week starts with a quiet day with European stock markets closed, and no data coming out of the US. Things will pick up on Tuesday with the release of US retail sales, PPI and business inventories. Fed Chairman Ben Bernanke is also due to speak in the afternoon. Wednesday brings further inflation/ deflation data with the release of Core CPI, as well as a host of middle tier economic announcements. Bernanke finishes the week with another speech on Friday, ahead of a number of speeches by US and European central bankers over the weekend.

Last week Barclays rode the quest of a wave as the long awaited sale of iShares was completed, however the sale provided less of a lift to its tier 1 capital ratio than many first thought. The coming week sees earnings season start to build momentum in the US with a number of financial firms such as Goldman Sachs reporting profits. The trend has been positive over the last few weeks, but earnings season could spring some surprises that lead to an increase in volatility in the financial sector. One way to play this is through a one touch trade.

Economic Calendar for week 13th – 17th April 2009

**Note: All times GMT, not DST**
Monday April 13th:

Bank Holiday EU/ FR/ GE/ UK

Tuesday April 14th

US – 12:30 – Retail Sales M/M.
US – 12:30 – Core Retail Sales M/M.
US – 12:30 – PPI M/M.
US – 12:30 – Core PPI M/M.
US – 14:00 – Business Inventories M/M.
US – 14:30 – FOMC Member Evans Speaks.
US – 16:00 – Fed Chairman Bernanke Speaks.
UK – 23:01 – RICS House Price Balance.

Wednesday April 15th

UK – 08:30 – DCLG HPI Y/Y.
US – 12:30 – CPI M/M.
US – 12:30 – Core CPI M/M.
US – 12:30 – Empire State Manufacturing Index.
US – 13:00 – TIC Long-Term Purchases.
US – 13:15 – Capacity Utilization Rate.
US – 13:15 – Industrial Production M/M.
US – 14:30 – Crude Oil Inventories.
US – 17:00 – NAHB Housing Market Index.
US – 18:00 – Beige Book.
UK – 23:01 – BRC Retail Sales Monitor Y/Y.

Thursday April 16th

EU – 09:00 – CPI Y/Y.
EU – 09:00 – Core CPI Y/Y.
EU – 09:00 – Industrial Production M/M.
US – 12:30 – Building Permits
US – 12:30 – Unemployment Claims.
US – 12:30 – Housing Starts.
US – 14:00 – Philly Fed Manufacturing Index.
US – 14:30 – Natural Gas Storage.
US – 17:00 – FOMC Member Lockhart Speaks.

Friday April 17th

US – 00:00 – FOMC Member Yellen Speaks.
EU – 03:00 – ECB President Trichet Speaks.
EU – 09:00 – Trade Balance.
US – 13:55 – Prelim UoM Consumer Sentiment.
US – 13:55 – Prelim UoM Consumer Expectations.
US – 16:00 – Fed Chairman Bernanke Speaks

EU – Europe wide
FR – France
UK – United Kingdom
US – United States
GE – Germany