Investment Markets Overview — W/E 26th February 2016

It was difficult to avoid politics this week, whether it was the daily “mis-information” being trotted out on “Brexit,” “the Donald’s” new “running-mate” or the G20 Shanghai show, which did anything but offer stability to the markets. For those who missed our two-penneth on the former, including THE likely key variant to the referendum outcome,“Brexit, Socionomically Thinking,” enlightens, or hopefully tries to. We’ll have more on the US election further down, but let’s start with the G20, where divisions are widening. IMF re-elected Chief, Ms Lagarde, came out with her usual “pearls of wisdom,” citing threats from geopolitical risk, the credit cycle, capital outflows and falling commodity prices, hardly new news. Having encouraged this group to pour a further $US50+ Trillion of “debt fuel” onto an already raging debt fire, aka 2007/09, she urged the world’s biggest economies to “come up with new ways to support demand and contain risks as the outlook for global growth deteriorates,” going on to request that G-20 nations, “unleash fiscal stimulus and structural reforms.” The German finance minister politely replied that whilst Germany endorses structural reforms, it is opposed to fiscal stimulus, observing that “the sliding oil price has already offered a huge stimulus and that the space for monetary policy has been exhausted.” Meanwhile, they were in agreement that Brexit would not only be bad for the UK, it would be a shock to the global economy, going on to state in its communiqué that G20 ministers pledged not to engage in beggar-thy-neighbour currency devaluations which could unleash a wave of dangerous deflation through the global economy. Are these guys for real?

26 February 16

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 the Trump bandwagon rolled ever closer to winning the republican nomination ……

Charts:
1.  Indices Weekly
2. US Personal Consumption V US GDP
3. Euro-Zone Confidence Readings
4. China Consumer Conf  V  SH Comp
5. Commodities Weekly

Table:

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

“The times they are a changing.

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

 

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