Investment Markets Overview — W/E 29th January 2016

There was plenty of economic data to qualify for the lead-in this week, including the latest GDP readings for the US and the UK, the mid-week FOMC press release or the latest CPI number for the Euro-Zone, There was also plenty going on within the geo-political arena and we touch on the aforementioned topics further down this overview, as the top slot has to go to the Bank of Japan who woke everyone up on Friday morning. All pundits expected a “nil change” at their routine monetary policy meeting, but Governor Haruhiko Kuroda dropped a bomb-shell by announcing a move to negative interest rates, following the lead of the ECB, the Swiss and Denmark and just weeks after Kuroda rejected the idea of negative rates. The Nikkei leapt by 700 points closing its Friday session with a 2.8% gain, followed through by European and the main US stock-indices whose trading sessions reversed what were weekly losses. For more on this you may wish to visit Friday’s blog posting, “ A Yen for a Loss.” It was a bad week for the Japanese policy-makers, and policy-makers in general, as it not only re-iterates that the central banks are clue-less on how to deal with a credit deflation, but this week’s resignation by Japan’s Finance minister Akira Amari, the spearhead of its”Abenomics” strategy to boost growth and competitiveness, following allegations of accepting bribes, increases the dis-trust of politicians globally. A great movie currently doing the rounds, “The Big Short,” which is based on true events during the 2007/09 financial collapse, is a salient reminder not to rely on the integrity of the revolving door of “politics, banking and regulation,” you are truly on your own in respect of protecting your financial wellbeing.

29 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 ends the first month of the year and what a month it was, as US stocks took their worst January beating since ……

Charts:
1.  Indices Weekly
2. US Durable Goods Orders V US GDP
3. UK Services Index V UK Business Confidence
4. Japan Household Spending  V  Japan CPI
5. Commodities Weekly

Table:

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

“The Illusionists are running out of Tricks.

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

 

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