Investment Markets Overview — W/E 23rd October 2015

Last week we led with the observations on the global trend towards deflation, supported by the ever-increasing global debt, personal, corporate and above all, sovereign. This week’s tag-team events between the European Central Bank and The People’s Bank of China confirm just how worried policy-makers must be over the deepening global economic slowdown. China’s central bank cut its benchmark one-year lending rate by 0.25%, to 4.35% and its 1-year deposit rate to 1.5%, whilst the reserve requirements for all banks was cut by 0.5% with an extra 0.5% thrown in for some institutions. It was the sixth rate cut since last November and came as a surprise to the market within a day of “Super Mario’s,” hint, not action, at the ECB press conference of further QE. IF the hint turns into reality, it will follow the €1.2 Trillion existing bond-buying program, already increased of late in a futile effort to re-flate the Euro-Zone, but has as much to do with the “competitive global currency devaluation game,” that is in train. Meanwhile, Japan’s central bank was also very happy to have market participants speculate on further simulative measures, including further Yen weakness, following more disappointing economic data announced this week.

23 October 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 . . .

Canadians were the latest electorate to shout loud and clear at the voting booths last week saying, “we want change,” ……

Charts:
1.  Indices Weekly
2. US Housing Starts V US Houe Price Index
3. G7 DEBT/GDP
4. China “Official” GDP  V  Blomberg China GDP
5. Commodity YTD  Moves

Table:

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

“The world is Changing and it’s Changing Fast.

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

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