Weekly Market Review 1 of October
The 3rd quarter has come to an end, Once again, Europe was its primary concern but, unlike in the past, the euro zone actually made real progress in fixing the euro crisis during the last three months. European Central Bank president Mario Draghi kicked off the wave of optimism by saying in July that he was willing to do whatever it takes to keep the euro zone together.

By the end of the quarter the US broader index, The S&P 500, gained (6%), Europe stock (up 13%), India equity (up 17%), China region (up 4%) and Japan stock (up 5%).

On the macro side, On Friday, Spain bank stress test shows that spanish banks would need up to €59.3 billion in capital injections, according to the final results of the stress tests run by Oliver Wyman. This estimation is really close to market expectations of around €60-€70 billion.

In a scenario where tax credits and mergers are taken into account, the shortfall is €53.7 billion.

Audit results stated that 7 banks need capital while other 7 don't. Alone, Bankia capital shortfall is €24.7 billion, while taking all the nationalized banks together, Bankia, CatalunyaBank, NovaGalicia Banco and Banco de Valencia, the capital need is €46.2 billion.

Spain banks are not the only concern, Investors also remain wary about the outlook for Spain, which is expected to need a full international bailout at it struggles to raise funds for deficit-laden regional governments while recapitalizing its struggling banks.

But the uncertainty about Spain and the wider global economic outlook follows a strong third quarter for many financial markets, when aggressive actions by major central banks to ease policy boosted prices.

EUR/USD Weak Asian economic data today and concerns about Spain's public debt problems briefly pushed the euro to a three-week low on Monday, but European shares were higher as investors took advantage of recent falls to buy back in to market.

The euro fell as low as $1.2804 early on Monday before recovering to be little changed at about $1.2890.

'The market has entered ‘glass half-empty' mode,' analysts at Morgan Stanley said in a note, signaling that each piece of weak economic news will probably be interpreted negatively.