Investment Markets Overview – w/e 20 Dec 2013

The U.S. Federal Reserve announced plans to trim its aggressive bond-buying program by $10 billion per month, $5BN of treasuries and $5BN Mortgage Backed Securities, and just in case the markets’ expressed concern, they re-emphasised a desire to maintain its key interest rate at low levels for even longer than previously promised and well after the unemployment rate falls below 6.5% or inflation exceeds 2%. This suggests that QE could continue to the end of next year with the grotesquely bloated Fed balance sheet expanding to $US4.5 trillion. Meanwhile,credit rating agency, Standard & Poor’s, cut its long-term rating on the EU to AA+ from AAA and maintained its short-term rating at A-1+. Leaving their outlook at stable, the company said in a statement, “The downgrade reflects our view of the overall weaker creditworthiness of the EU’s 28 member states,” going on to say, “we believe the financial profile of the EU has deteriorated and that cohesion among its members has lessened, whilst EU budgetary negotiations have become more contentious, signalling what we consider to be rising risks to the support of the EU from some member states.”

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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 . . .
  • The U.S. Financial Crisis Inquiry Commission reported its findings in January 2011 . . .
  • Charts:- 
  1. Indices Weekly
  2. US Housing Starts vs US 30-Year Mortgage Rate
  3. UK Consumer Confidence Q on Q vs UK Retail Sales Q on Q
  4. Japan Trade Balance vs Japan Imports vs Japan Exports
  5. Commodity 1 Week Moves
  • Table:-

               13 Indices, 11 columns of detailed information, for accurate analysis

“Repetition does not change a Lie into the truth”    

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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  This will be our last Weekly Commentary of
2013


We wish all readers a Merry Christmas and a happy,
peaceful and prosperous New Year.

 

holly_2

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