Last update: Sun, 24 Jul 2016 09am

Stocks and Bonds: World


Wall Street rose on Friday, clinching the fourth straight positive week for the stock market, boosted by strength in telecom stalwarts AT&T and Verizon. A US manufacturing report also came in above expectations, building on upbeat data from earlier in the month. Gains were limited by weakness in reports from industrial companies including General Electric.

Canada's main stock index hit its highest close in a year on Friday, notching a fourth straight weekly gain as yield-producing telecom and utility stocks found favor, offsetting a plunge in shares of Valeant Pharmaceuticals International Inc. Valeant fell 6.2 percent to C$30.03 after US regulators raised concerns about a new eye drop the company manufactures.
The impressive rally in Brazilian stocks this year is probably finished as concerns over a huge budget deficit offset initial optimism about the impeachment of President Dilma Rousseff, a Reuters poll showed on Tuesday. Mexican stocks have little upside too, according to equity strategists surveyed by Reuters, as oil price and currency volatility prompted the central bank to jack up interest rates at the risk of slowing economic growth.
Investors withdrew the most money to date this year from US-based mutual funds during the week after Britons voted to leave the European Union, the Investment Company Institute data showed on Wednesday. The $10 billion withdrawn from the funds over seven days amounts to the largest outflow from the funds since investors pulled $15 billion in the last week of 2015, the data showed, when sinking oil prices threatened to sink stocks and force a wave of corporate defaults.
Saudi Arabia's government has contacted banks to sell them about 20 billion riyals ($5.3 billion) of bonds in its domestic debt sale this month, the Maaal financial website reported on Wednesday, quoting unnamed sources. Since last August, the government has been selling around 20 billion riyals of domestic bonds to banks every month to fund a budget deficit caused by low oil prices. In the last few months it has also started borrowing abroad. It raised a $10 billion international loan in late April and plans a US dollar bond issue in coming weeks or months.
Brazil returned to US dollar bond markets on Thursday after a four-month hiatus, taking advantage of a broader EM rally and growing optimism about the country. The sovereign is offering a long 30-year global bond at initial price thoughts in the very low 6% area, setting it on course to price flat or inside the country's 2026 bond which priced in March at a yield of 6.125%.
Global investors, fretting over economic growth and Brexit, have cut equity allocations to underweight for the first time in four years while raising cash to the highest in almost 15 years, a Bank of America Merill Lynch survey showed on Tuesday.