Investment Markets Overview — Week Ending 18th July 2014

It’s becoming a bore commenting on the World’s leading Central Bankers, but as they are publically jaw-boning on an almost daily basis now, particularly on “policy guidance” and other such nonsense, together with the irrefutable sway that they appear to hold on the investment community, we will continue to interpret their machinations in an honest and frank manner. The bosses of the Fed, the Bank of England and the ECB were all on parade this week, appearing before their respective “political controllers.” First up was the comely Queen Yellen who had back to back testimonies in front of the Senate Banking Committee, where she raised concerns over smaller company stock valuations, having been oblivious to any “bubbles” just a short week earlier. Share prices of some the largest employers within the US duly tanked on the statement. The following day, appearing before the House Financial Services Committee, she said,” asset values aren’t out of line with norms and my general assessment at this point is that threats to financial stability are at a moderate level and not a very high level.” Clear as mud then, but at least stocks managed to recoup some of the losses. Meanwhile, Mario “I’ll do whatever it takes” Draghi, testifying before the European Parliament, announced a plan to become more “Fed-like,” by way of publicised minutes of meetings, which although in theory should provide greater transparency, will likely further politicise the 24 members of the ECB’s governing council, who all remain tied to their own member states. Finally, charmer Carney, appearing before the UK’s Treasury Committee, explained that the curbs on the housing market were introduced not because people would be unable to pay those loans, but to head off the impact of such high household indebtedness on the economy. This from the former Governor of Canada’s central bank, who presided over a jump from 142% to 163% debt to disposable income between February 2008 and June 2013 whilst there.

18 July 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 . . .

The financial newswires were unanimous in their rationale for the increased market volatility witnessed this week and for Thursday’s market sell-off …..

Charts:
1.Indices Weekly
2.US Housing Starts V Prices V Confidence
3.UK Real Wage Growth
4.Singapore GDP V Electronic Exports
5.Commodity 1 Week Moves

Table:

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

Rational People OR Emotional Sheeple?.”

Click Here to view Details of the full version of this Newsletter which includes full text and detailed Charts for each section

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: