Commentary

The major U.S. indices moved higher this week, led by technology stocks on the Nasdaq and lagged by the DJIA. After growing a less-than-expected 2.5% during the first quarter, many investors were just happy that there wasn’t a repeat of the fourth quarter’s unexpected 0.4% growth rate and a return to normalization. Meanwhile, consumer spending has remained robust despite the payroll tax holiday and the ongoing sequestration.

Foreign markets also experienced a relatively bullish week, led by Japan’s Nikkei 225 and Germany’s DAX indices, which both rose more than 4%. In Europe, Britain’s FTSE 100 jumped over 1.8% extending its move higher over recent weeks. And in Asia, the FTSE/Xinhua China 25 index rose just over 2.5%, as the Chinese economy undergoes a major transition. Japan continues to be the most interesting market for traders given the volatility due to BOJ comments.

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