Investment Markets Overview — W/E 17th April 2015

There was further evidence of a slowing US economy this week plus “unintended consequences” in respect of the ECB’s negative interest rate policy which is discussed in further detail below. It was also a disappointing week for economic news out of China, which included a -14.6% annualised slump in exports for March, partially due to the stronger Yuan but more to do with a lacklustre recovery in its major trading partners, the US and Europe. Retail sales also eased in March, as did industrial production, whilst the all important real estate sector continues to contract, increasing non-performing loans within the banking sector as negative equity grows. Talking of growth, China’s Q115 GDP figures were released this week and although the headline 7% year-on-year was in line with Premier Li’s target, on a quarter on quarter basis it slowed to 5.3% versus the 6.1% tallied for Q414. The one area that continues to grow is the financial sector, buoyed by ever increasing outstanding credit, now reported at 204% of GDP according to Bloomberg, a large part of which appears to have been channelled towards the bubbly stock-market.

17 April 2015

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 . . .

As stated above, the ECB left its “Deposit Facility Rate,” on hold, at -0.2% and its President “Super Mario,” was quick to claim ……

Charts:
1.  Indices Weekly
2. US Consumer Confidence V US Retail Sales
3. UK Private Sector Wages V UK Composite Wage Growth
4. China Retail Sales V China GDP
5. Commodity YTD  Moves

Table:

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

“Panicky Policies often Return to Bite.

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

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