Investment Markets Overview — W/E 30th October 2015

The US “debt limit” returned to centre stage this week as America narrowly avoided a debt default once more, following the close calls of 2013 and 2011. Congress passed a two-year bipartisan budget on Wednesday by a 266-167 vote with only 79 Republicans supporting it, which was ratified by a 64-35 Senate vote on Friday and now allows President Barack Obama a bill that will extend the U.S. borrowing authority until March 2017, conveniently after he leaves office. The Treasury Department hit the debt limit in March of this year forcing it to use “emergency cash-management measures,” borrowing from Peter to pay Paul, to avoid breaching it, with Treasury officials warning of exhausting those measures by next Tuesday the 3rd November. The deal suspends the current debt limit of $18.1 trillion until March 2017, after which the limit will be set higher to include any new debt issued over the interim period and ensures a continuation of a very large chunk of existing US Federal revenue being used to service the debt. Meanwhile, US Treasuries had their worst week since August, pushing yields to their highest in more than a month.

30 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 . . .

 Credit Default Swaps, a type of third party insurance policy that hopefully assumes the risk of a debt going sour……

Charts:
1.  Indices Weekly
2. US Credit V US GDP & CPI
3. UK Credit V UK GDP
4. Japan CPI  V  The Oil Price
5. Commodity YTD  Moves

Table:

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

“Transparency works for the best interests of the market.

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

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