Investment Markets Overview – w/e 21 Sep 2012

Welcome back after last week’s “rest” by us. As expected during our absence the Federal Reserve announced their QE3 programme, an indefinite plan to purchase $40BN of mortgages per month until the US unemployment rate falls to 7% or less. For good measure the Bank of Japan stepped up to the plate this week, expanding its QE (err, sorry, its asset purchase fund,) by 25% to $697BN, in an effort to prevent the Yen from rising, thereby choking off exports. Other worthy observations on the political front included a typical response from Spain’s Prime Minister Rajoy, when asked what he thought of Mario Draghi’s “conditional loans.”  Rajoy replied,” that he would take the EU’s money but would never allow them to dictate how Spain’s economy is managed.” Meanwhile, Greece is understood to have created a working group to assess how much Germany owes it in war reparations, in an astonishing twist to the euro zone crisis. In a move which will no doubt infuriate the euro zone’s powerhouse, Greece’s finance ministry has said it is scouring its archives to assess how much Germany may owe it in reparations for Nazi war crimes committed during World War II. You couldn’t write it could you?

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

  • US economic statistics this week included . . . .
  • Euro-Zone data included  . . . .
  • For the UK we had August CPI numbers  . . .
  • Out East, Japan’s exports    . . .
  • We note an interesting correlation between Yen strength and Japanese consumption  . . .
  • The $US index recovered by  . . . 
  • Within the commodities complex, . . .
  • Economic data due next week includes . . .

The euphoria shown by investors to the latest “QE rush” . . .

Charts:-

  1. Indices Weekly
  2. Empire mftcrg Vs US GDP
  3. UK Retail Sales Vs UK Govt Net Cash Req
  4. $US/Yen Vs Japanese Households Propensity to Consume
  5. Most Recent Forecasts for Gold

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

The further West I go the more I’m convinced that wise men come from the East

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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