Investment Markets Overview — W/E 4th March 2016

Super Tuesday,” saw Trump and Clinton move further ahead in their goal to represent their respective political party’s’ as the next President of the United States of America contender and for those who may have missed it, a Socionomic insight into just why outsider Donald is doing so well, you may find “Trump Card,” of interest. The lead focus this week, however, is on China, or more specifically China’s latest stimulus attempt in propping up its stock-market and its expectation for the economy going forward. On Monday China cut its reserve ratio requirement, the amount of cash the nation’s lenders must lock away as a safety net, by 0.5% to 17%, the 5th cut in 13 months and despite Chinese banks already extending a record amount of new loans in January. It’s a desperate move to counter the slowing economy by trying to increase credit growth, but the chances are that it only counter-acts the growing outflows of late. Either way, ratings agency, Moody’s Investors Service, lowered China’s credit-rating outlook to negative from stable within days of the announcement, raising concerns over the surging debt burden, put at anywhere between 250-300% of GDP. As GDP continues to fall, confirmed this week at a 25-year low target of 6.5% to 7% annual growth rate by Premier Li Keqiang’s report to the annual National People’s Congress, debt-to-GDP will rise further. Furthermore, the government’s deficit – to – GDP, which is put at $US335BN, a 25% increase on a year ago, will do nothing to ease concerns, particularly as the GDP targets are still highly optimistic according to many pundits.

5 Mar 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 . . .

   So this week it was Chairman Li under the spot-light, whilst next week it will be the turn of “Super Mario,” Draghi ……

Charts:
1.  Indices Weekly
2. US Total NFP V US Private Sector NFP
3. UK Consumer Credit V UK New Car Registrations
4. Japan Household Spending  V  Jan CPI
5. Commodities Weekly

Table:

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

“Fools Running the Asylum Comes to Mind.

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

 

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