Market Digest \u2013 Week Ending 8\/16\r\n\r\nThursday\u2019s better than expected jobs report drove a selloff in US equities on fears the Fed could begin reducing stimulus measures. This fear of tapering also pushed up bond yields and placed downward pressure on prices. Gold and commodities increased as investors looked for safe havens from more traditional asset classes, while international stocks were flat.\r\n\r\nWeekly Returns:\r\nS&P 500: 1,656 (-2.1%)\r\nFTSE All-World ex-US: (+0.0%)\r\nUS 10 Year Treasury Yield: 2.83% (+0.25%)\r\nGold: $1,374 (+4.6%)\r\nUSD\/EUR: $1.334 (+0.0%)\r\n\r\nMajor Events:\r\n\r\n \tMonday \u2013 Due to continued weak demand for its phones, Blackberry formally announced it is up for sale and seeking strategic alternatives.\r\n \tTuesday \u2013 US retail sales exceeded expectations in July, rising for the fourth consecutive month.\r\n \tTuesday \u2013 Activist investor Carl Icahn announced a large stake in Apple, estimated at $1.5 billion, as well as his push for more share repurchases. \r\n \tWednesday \u2013 Mohamed ElBaradei stepped down as Egypt\u2019s interim leader to protest the military\u2019s crackdown on protestors, which killed hundreds.\r\n \tWednesday \u2013 The Eurozone\u2019s recession officially ended with positive second quarter GDP growth of 0.3%\u2014ahead of expectations.\r\n \tThursday \u2013 Weekly US jobless claims fell to lowest level since 2007 demonstrating continued, albeit slow, improvement in the labor market.\r\n \tThursday \u2013 President Obama condemned the violence in Egypt and cancelled plans for a joint military exercise scheduled for September.\r\n \tFriday \u2013 US single family home starts fell from June, fueling fears that higher mortgage rates are crimping demand.\r\n\r\nOur Take:\r\nIt was a week of mixed news, but one bright spot was the Eurozone which returned to positive economic growth during the second quarter. GDP was up 0.3%, which translates into an annualized rate of 1.1% for the 17 nation currency bloc. Growth was mostly driven by Germany and France, with Greece and Spain still in contraction. However, their rate of contraction improved from the previous quarter. Some speculate these figures could reduce the urgency for ailing nations to shore up finances, but overall we view the news positively.\r\n\r\nGranted, massive unemployment and indebtedness mean Europe still has a long road ahead. But should the region post another quarter of positive growth, it\u2019s entirely possible for European equities to take the global performance lead. At approximately 12.2x forward earnings, The MSCI Europe Index is very cheap relative to the US. The S&P 500 currently sits at around 15.4x. And remember, the stock market is forward looking. Conditions don\u2019t need to be perfect for equity prices to rise, just better than expected. Another quarter of positive growth would help reinforce the perception the region is on the mend. More importantly, stronger European growth will provide a much needed tailwind to the global economy.