Investment Markets Overview – w/e 29 Jun 2012

Continuing with last week’s analogy between the EU summit and the Euro 2012 soccer tournament, the German team suffered a shock defeat by Italy in the semi-final, whilst at the summit, German Chancellor, Angela Merkel, caved in to Italian led demands to use the “stabilisation funds”, the European Financial Stability Facility and the yet to start European Stability Mechanism, to lend directly to Euro-Zone problematic banks, rather than the current legal requirement of lending via the respective sovereign of the troubled bank, thereby precluding any increase in the sovereign debt and DEBT/GDP ratios. The fact that the sovereign has increased its debt to assist in funding the stabilisation fund(s) appears to have been ignored, or not understood by investors, as markets soared on the news. Furthermore, leaders of the 17 euro countries dropped the requirement that governments get preferred creditor status on crisis loans, potentially lining up the taxpayer for unlimited losses should their “leaders solution” not go to plan.

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Subscribe to the Full Investment Markets Overview Newsletter which contains the following additional content:-

      • US economic statistics released this week were mainly positive . . . .

      • Euro-Zone consumer confidence is forecast to fall in June . . . .

      • Out East, Japan’s retail sales for May were stated at . . .

      • Hong Kong’s trade deficit improved in May . . .

      • The $US index ended lower by  . . .

      • For the commodities complex it was another volatile week . . . 

      • . . . the price of Copper and Silver . . . 

      • Economic data due next week includes the latest on vehicle sales  . . . 

      • Aside of the agreement to allow loans to euro-zone banks directly from the EFSF and the EFS . . . 

 

  • Charts:-
      • Indices Weekly

      • US Personal Income/Expenditure. US Nominal GDP . . .

      • UK Total Debt to GDP by Sector (2011)

      • Japan Household Spending – Nominal GDP

      • $US Silver Spot – $US Copper Spot

  • Table of 15 Indices, 11 columns of detailed information, for accurate analysis

 

Finance is the art of passing currency from hand to hand until it finally disappears

 

Click  HERE  to view Details of the full version of this Newsletter

which includes full text and detailed Charts for each section

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