Investment Markets Overview – w/e 5 Apr 2013

There were four major central banks on parade this week, the wizard of OZ, the Bank of Japan, the ECB and the Bank of England with the expectation that the latter three would do more to stimulate their economies. In the event the Bank of England left its “asset purchase target,” a fancy name for QE, at £375BN, whilst the ECB, fresh after the Cyprus debacle, observed that the Euro-Zone economy was weak and that the ECB will monitor activity very closely. Riding to the rescue, however, was the Bank of Japan’s new Governor, Haruhiko Kuroda, who at his first policy meeting since his appointment last month, doubled up on Japan’s QE programme, to $74BN per month from the current $34BN. Japan will print more money, compared to the size of its economy, than the Federal Reserve and the “assets” purchased with it, will be even more dubious. This was endorsed by Fed Vice-Chair, Janet Yellen, who said that the plan was appropriate to end Japan’s de-flation, despite no evidence of QE ending Japan’s previous attempts nor by the Fed’s own efforts.

130405_1_chart

 

 

Kuroda’s stated target is 2% inflation rate and a revival in the world’s third-biggest economy within a two year time frame, something that Japanese policy-makers haven’t achieved for 20 years. Whether he achieves it the future will tell but either way, he’s going for broke versus his contemporaries.

130405_2_chart

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

  • US economic data . . .

  • Euro-Zone   . . .

  • The UK . . .

  • Out East   . . .

  • The $US index  . . .

  • Within the commodities complex  . . .

  • Economic data due next week includes  . . .

  • Returning to those awful US employment statistics, . . . .
     

  • Charts:-
    1. Priming the Pump (Central Banks ….)
    2. Indices Weekly
    3. US Labour Force Participation Rate vs US Unemployment rate
    4. Euro-Zone GDP vs Euro-Zone Retail Sales Y on Y
    5. Japan Tankan Mftcrg Sentiment vs Japan Retail Sales Y on Y
    6. Natural Gas Prices

 

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


                                         “A consumption led economy is not enhanced by income cuts”

 

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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