Investment Markets Overview — W/E 8th January 2016

Peace and goodwill to you all, albeit that the New Year started with a bang, literally in North Korea’s case as they tested an alleged Hydrogen bomb, whilst Saudi Arabia’s execution of a leading Shiite cleric has triggered the worst crisis between the Sunni kingdom and its chief Middle Eastern foe, Iran, in more than two decades. Nimr al-Nimr’s execution, one of the 47 executed, where all but one were Shia, was an illustration of Saudi Arabia’s “get tough” policy against Iran and internal dissent, but It’s a dangerous gamble for the “House of Saud” as 10 to 15% of Saudi Arabia’s Shiites live close to the world’s largest oil fields in the eastern region according to the CIA World fact-book. Some have suggested that it was a cruel ploy designed to spike the oil price, which failed miserably if it was, as the price of “black gold” tumbled by a further 10% over the first trading week of the year to $33 a barrel. The price collapse of the past 18 months is putting a considerable strain on the finances of both Saudi and Iran, and increasing domestic social unrest for Saudi in particular, as fewer bribes are dolled out to keep the population happy and subsidies on basics such as fuel are being reduced. To reverse this trend Iran needs a $70 oil price whereas Saudi need $90 a barrel, which is unlikely over the short to medium term. The financial markets also witnessed great tension during this brief year to date 2016 period, which is expanded on below.

8 Jan 2016

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 . . .

  So volatility was evident within all financial asset-classes and global at that, albeit that stocks bore the brunt of it ……

Charts:
1.  Indices Weekly
2. US Trade Deficit  V US Imports & Exports
3. UK Unsecured Credit V UK New Car Registrations
4. Japan Wages V  Japan CPI
5. Commodity YTD  Moves

Table:

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

“Mind the Gap.

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

 

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