Equity Indices

	Closing Price	Change			Closing Price	Change
		On Week	YTD			On Week	YTD
Dow Jones Industrial Average	18,312.39	1.35%	2.75%	FTSE 100	6,995.10	0.88%	6.53%
S&P 500	2,127.83	1.37%	3.35%	Nikkei 225	20,026.38	2.05%	14.76%
Nasdaq Comp	5,070.03	1.89%	7.05%	Hang Seng	27,693.54	1.04%	17.32%
DJ Euro Stoxx 50	3,670.52	2.73%	16.66%	MSE Index	3,785.723	0.08%	13.65%

Japanese stocks rose to a three-week high for the highest close since 28 April mainly due to a surge in companies announcing higher returns for shareholders.  US stocks ended higher week-on-week following a rise in US housing starts which was interpreted by some that the economy was on a rebound and that the US Federal Reserve could start raising rates sooner rather than later.

Interest Rates

Benchmark Bond Yields

	Current 2yr Yield	Yield Change		Current 10yr Yield	Yield Change			Present Interest Rate	Last Variance
		On Week	Since Dec 12		On Week	Since Dec 12
US	0.61	0.02	-0.06	2.29	0.04	0.12	FED	0.00 to 0.25	-0.75  to -1.00	16-Nov-08
Euro	-0.20	-0.01	-0.10	0.61	-0.05	0.07	ECB	0.05	-0.10	04-Sep-14
UK	0.62	0.07	0.17	1.98	-0.03	0.23	BOE	0.50	-0.50	05-Mar-09
Japan	0.00	-0.01	0.02	0.40	-0.06	0.07	BOJ	0.00 to 0.10	-0.10	05-Oct-10
Australia	2.09	-0.03	-0.10	3.02	0.03	0.21	RBA	2.00	-0.25	05-May-15
Canada	0.70	0.01	-0.31	1.84	0.03	0.05	BOC	0.75	-0.25	21-Jan-15
Malta	0.18	-0.01	-0.28	1.56	-0.03	-0.33

The Treasury on Tuesday accepted Euro 3.00 million in 91-day Treasury Bills at an average yield of -0.001 percent.  Outstanding Treasury Bills amount to Euro 194,550,000 - an increase of Euro 3 million from the previous week.   

The US housing starts reached their highest level in over seven years during April.  Starts for single-family homes which accounts for the biggest share of the market, reached their highest level since January 2008.  Permits for home construction in the future also increased by over 10%.  The strength of the housing sector is the opposite to the weakness in manufacturing, business spending and consumption.  This has led to economists lowering growth estimates for the second quarter and suggestions that the US Federal Reserve could raise interest rates sooner rather than later.

The European Union's statistics office confirmed that euro zone prices were flat during April.  Consumer prices rose 0.2% month-on-month in April, with the year-on-year reading coming in at 0%.  The European Central Bank's target is to keep the headline measures of inflation under but close to 2% year-on-year over the medium term.  In this regard the bank started to buy government bonds in March to inject more cash into the system and push up prices.

The UK's annual rate of consumer price inflation (CPI) inflation fell into negative territory in April for the first time on record, falling to -0.1%, compared with the same time last year.  This is the first time CPI has turned negative since 1960, based on comparable historic estimates according to the Office for National Statistics.  The biggest contribution to the fall came from a drop in air and sea fares due to Easter coming earliy this year.  The Bank of England has previously warned that inflation could turn negative for a brief period this year, with Chancellor George Osborne saying the fall in the inflation rate was only temporary.

Japan's economy grew faster than expected between January and March, as business investment rose slightly.  The economy expanded 0.6% in the period compared to the previous quarter, registering its second consecutive quarter of growth.  Analysts had been expecting a growth of 0.4%.  Japan's economy has been facing various headwinds including wages, which have remained stagnant for several years, together with a weaker yen Japan relies on domestic consumption for about 60% of its economy, but it has been recovering from a sales tax hike which has dampened spending.  Japan's economy has been stalled by stagnant wages and a weaker yen, making imports more expensive.  The weak currency on the other hand gives a boost to big exporters, making exports cheaper for overseas clients.

Forex

	Exchange Rate	Change
		On Week	YTD
EUR/USD	1.1147	-0.59%	-7.86%
USD/JPY	120.6900	0.70%	0.76%
GBP/USD	1.5508	-1.00%	-0.44%
EUR/GBP	0.7186	0.49%	-7.46%
USD/CHF	0.9368	0.85%	-5.78%

The US dollar rallied, boosted by the European Central Bank's plan to step up asset purchases and strong US housing data.  The dollar rose against the euro after a European Central Bank official said it would increase its asset purchases in May and June to offset an expected market slowdown in the following months.

HSBC Bank Malta p.l.c. has based this document on information obtained from sources it believes to be reliable but which it has not independently verified and is for your personal, non-commercial use only. The contents do not constitute a solicitation of the purchase or sale of any investment. Although HSBC makes every reasonable effort to do so, it makes no representations that the information presented is accurate, complete or timely. Expressions of opinion herein are subject to change without notice. Accordingly, HSBC shall not be liable for any decisions made or actions taken in reliance on such information. Past performance is not necessarily a guide to future performance and the value of investments may go down as well as up. Issued by HSBC Bank Malta p.l.c., which is regulated by the Malta Financial Services Authority.