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GLOBAL OUTLOOK



.DUBLIN ISEQ 7679.02 Up 0.3% on week Ireland's ISEQ index added 0.3% to 7679.02 on Friday. The market managed to hold on to some gains although trading volumes were weak. The ISEQ index closed 37.87 points higher at 7,679.02. With the Federal Reserve clearly concerned about the recent increase in inflation expectations, this should keep the market fixated on price pressure indicators over the coming weeks. However, investors will be keeping an keen eye on the European Central Bank's widely expected 0.25% interest rate hike next Thursday with economists not discounting a 0.5% increase. Irish Life & Permanent said last week that it expects the pace of growth to ease in the second half of the year as the ECB continues to increase it benchmark lending rate.

.LONDON FTSE 100 5764.6 Down 0.5% on week UK stocks including Vodafone and HBOS finished higher on Friday, after the US May employment report showed slowing wage growth and fewer job gains than analysts had forecast. The FTSE 100 increased 14.9, or 0.3%, to 5764.6 after gains of as much as 0.9%.

However, the measure lost 0.5% this week. BAA, the object of a hostile takeover bid from Grupo Ferrovial, climbed after the Spanish company's takeover adviser started buying shares of the airport operator.

.EUROPE EuroStoxx 50 3375.19 Down 1% on week European stocks failed to hold their advance on Friday as renewed concerns about higher in"ation and interest rates dispelled optimism about earnings and slowing US wage growth. Indexes fell for the week.

Banks including Deutsche Bank, utilities such as E.ON and Nokia paced the decline. Benchmarks dropped in late trading on Friday.

.NEW YORK DOW 11247.88, down 0.1% NASDAQ 2219.41, up 0.4% S&P 500 1288.21, up 0.6% US stocks swung between gains and losses as some investors drew encouragement from an employment report indicating in"ation is under control. Others were concerned slowing job growth will curb consumer spending. WalMart Stores pushed the Dow Jones Industrial Average lower.




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