Investment Markets Overview — W/E 20th May 2016

It was another volatile week for the financial markets, buffeted by the mid-week FOMC hint that the US Fed funds interest rate will rise in June, whilst further unsubstantiated speculative predictions over Brexit continued to unsettle the UK markets. US “market rates” certainly took the hint seriously, as the 5-year bond yield spiked higher by 13.5%, whilst the £/$ exchange rate saw a game of two-halves, jumping by 2.3% from Monday to Thursday, only to give back half of the gain during Friday’s trading session. The precious metals complex also witnessed a wide trading range, as investor complacency over the Fed’s true intentions (understandable given their flip-flopping of late,) and the Dollar’s recent strength, questioned the fundamentals behind the PM bull-phase year-to-date. Japan narrowly avoided a “technical recession” in the first quarter of 2016, meaning two quarters of back to back negative GDP readings. That said, the 0.5% Q116 figure is a far cry from the 3.6% number achieved in Q489, just as their then mountain of debt was about to de-flate, taking grossly inflated asset values with it. Fast-forward 26-years and the Nikkei Dow stock index is still 57% lower than at December 1989 whilst land prices….well, despite years of stimulus after stimulus, we show them within the Asia section further on.

 20 May 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 . . .

  The G7 Finance Ministers and their central Bank todies met up in Japan this week and, as expected, played down the cumulatative evidence  ……

Charts:
1.  Indices Weekly
2. US Market Int Rates V FOMC Rate
3. UK Wages V UK Retail Sales
4. Japan Debt V Japan GDP and Land Prices
5. Commodities Weekly

Table:

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

“Garbage in = Garbage out Doesn’t Only Apply to Computers.

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

 

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