Investment Markets Overview – W/E 6th June 2014

The planned G8 heads of state meeting was due to be held in Sochi, Russia this week, but was changed to a G7 meeting in Brussels, as Vladimir Putin was boycotted by the rest of the gang as “punishment” over Russia’s recent annexation of Crimea. The “leaders,” including Vladimir, moved on to the D-Day 70th year commemorations’ whilst the financial markets had their very own D-Day, aka the ECB boss Mario Draghi, who introduced un-precedented monetary stimulus by cutting the deposit rate to minus 0.10%. This is the first time in history that a major central bank has employed a negative interest rate, in a last ditch effort to stimulate credit growth by punishing banks from hoarding cash. In theory one can understand the logic, but in practice, aside of stricter regulatory requirements for banks’ to tighten up on their lending criteria, there has been a change in the collective social mood within Europe, hence the demand for credit is just not there. Draghi-Day will be a tough battle.

6 June 14

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 the ECB’s “beachhead,” it found an ally by way of a stunning U-turn by Germany’s notoriously conservative central bank…….

Charts:
1.Indices Weekly
2.US Trade deficit vs the S&P500 Index
3.E-Z CPI V E-Z GDP
4.Japan Cash earnings V CPI
5.Commodity 1 Week Moves

Table:

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

_______________________

Change is evident, if you know where to look.”

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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