Weekend markets: May blues knock shares

Stocks on Wall Street extended their losing streak to a fourth week, the longest since the four weeks ended February 5, 2010, despite Friday’s lift in the blue chip index.

The Dow Jones Industrial Average rose 38.82-points on Friday to 12,441.58, down 70.46 points or 0.6% for the week and taking the loss for May, with one trading day to go, to 2.9%.

Market sentiment is dominated by the failure of economic growth to come in as many had hoped, crimped in part by soaring oil prices. Goldman Sachs and JP Morgan Chase have lowered their economic forecasts for the year.

Employment, too, has been weaker than hoped in recent weeks while European debt fears continue, with Greece possibly defaulting.

Other markets: Europe rises, Asia mixed
European stock markets gained on Friday, as bank shares rallied and the Group of Eight said the global economic recovery was gaining strength.

The Stoxx Europe 600 index climbed 0.7% to end at 279.05. For the week, however, the index slipped 0.2%. In London, the FTSE 100 index rose 1% to 5938.87, in Paris, the CAC 40 index 0.9% higher to 3950.98. and in Frankfurt, the DAX 30 index closed up 0.7% at 7163.47,

In Asia, most markets firmed as bargain buyers circled back into stocks bruised in a selloff earlier in the week. The exceptions were China, where stocks fell for a seventh straight session as worries about inflation and slowing growth restrained buyers, and Japan, where shares declined on concern over the nation's economic outlook and the yen's strength against the US dollar.

Australia's S&P/ASX 200 rose 0.5% to 4684.0, Hong Kong's Hang Seng index added 1% to 23,118.07, Taiwan's Taiex edged up 0.3% to 8810.00, Korea's Kospi climbed 0.4% to 2100.24 and India's Sensex advanced 1.2% to 18,266.10.

Japan's Nikkei Stock Average fell 0.4% to 9521.94, and China's Shanghai Composite ended at 2709.95, down 5.2% for the week.

Commodities: Oil stays above $US100, gold advances
Light, sweet crude oil prices settled above $US100 a barrel for the third consecutive day. Rallies have been kept in check by a string of US indicators that show a sputtering economic recovery ahead of the Memorial Day holiday that signifies the start of the summer motoring period.

Light, sweet crude for July delivery settled 36USc higher, or 0.4%, at $US100.59 a barrel, up 0.5% on the week.

Gold futures ended at their highest levels in more than three weeks, lifted by a weakening dollar and investor demand for a refuge from worries about euro-zone government finances.

Gold for June delivery ended $US13.50 higher, or 0.9%, at $US1536.30 an ounce in New York, the highest ending price since May 3 and the fifth day of gains in the last six sessions. Futures rose 1.8% on the week.

Currencies: US dollar drops further
A spate of weak US economic data dragged the US dollar down, as concerns about slower growth and a Federal Reserve committed to loose monetary policy sent the greenback to a two-week low against major currencies.

The euro was at $US1.4286 from $US1.4137 late on Thursday. The dollar was at ¥80.85 from ¥81.35, while the euro was at ¥115.50 from ¥115.01.

The UK pound was at $US1.6481 from $US1.6390. The dollar was at 0.8525 Swiss franc from 0.8660 franc late on Thursday.