Investment Markets Overview — W/E 1st July 2016

It is said “a week is a long time in politics,” was attributed to British Prime Minister Harold Wilson in the mid-1960s, but this week’s high drama within British politics requires a possible re-phrase to “ a day is a long time in politics.” With the post-brexit blame-game in full swing, the two main UK parties showed even more division and the shallow nature of politicians’ at their worst. The ruling conservatives jockeyed behind closed doors as to who leads the party after PM Cameron goes, with a field of five to be narrowed over the next few days with the winner likely to be either Teresa May or Andrea Leadsom, whilst the opposition Labour party were in outright civil war, following the attempted coup to oust its leader Jeremy Corbin. The “Brexit result” has also provided a convenient opportunity for the “financial experts” to blame their past years of consistently erroneous forecasts on the past few months of uncertainty, none more so than UK Chancellor George Osborne who abandoned his target to restore government finances to a surplus by 2020, saying ” the government had to be realistic about achieving a surplus by the end of the decade,” whilst failing to remind that the Government borrowed £74.9bn in the 2015/2016 fiscal year and are on course to exceed this for 2016/2017, despite six-years of forecasting substantial reductions.

For the financial markets one could be forgiven in thinking that brexit was a non-event, as the FTSE 100 stock-index, having slumped by 8.7% in the hours following the referendum vote result, soared by a staggering 13.6% before ending the week with a 7.2% gain, head and shoulders above its peers (in local currency that is!):

1 July 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 lead paragraph ended by saying, “in local currency that is,” which perhaps requires further comment. Investment asset-classes are naturally looked at “collectively” to see if bonds are performing better than say stocks, but they also need to be observed ……

Charts:
1.  Indices Weekly
2. US Consumer Confidence V US GDP & SPX
3. E-Z  CPI V E-Z  Services
4. Japan CPI V  Japan CPI X Food & Energy
5. Commodities Weekly

Table:

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

“There’s no problem central banks can’t fix.

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

 

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