Investment Markets Overview — W/E 22nd July 2016

It was difficult to ignore politics this week and the possible implications for the global economy going forward, particularly when observing “the Donald’s” Republican nomination acceptance speech at the Ohio convention. Aside of reminding his audience, both within the hall and the estimated 32m viewers, of his anti-establishment credentials, Trump specifically hinted at an “America-first vision,” specifically looking at reigning back debt by way of revised defence contributions to the likes of NATO where his perception is that other members are getting a free-ride at America’s expense and via re-negotiated trade agreements which he considers are grossly unfair to the US, particularly with China. He has also hinted at a corporation tax reduction to 15%, thereby encouraging the estimated $US2 to 3 trillion that corporate America stashes offshore to be returned home, which would have huge implication for the Dollar and for other currencies and sovereign debt where it is currently parked. Of course, to achieve any of these goals he now has to go on and win the November Presidential election, so no opportunity has been wasted to portray the alleged corruption of his democratic opponent, Hillary Clinton, as endemic within the political establishment, utilising a modern twist of Ronald Reagan’s famous quote, “do you feel better off than you did 4-years ago,” by saying, “America is far less safe and the world is far less stable, than when Obama made the decision to put Hillary in charge of America’s foreign policy.”

The financial markets saw stocks inching higher, bond yields re-tracing part of last weeks gains with commodities in the main lower. Meanwhile, the ECB followed their UK counterpart by confirming its “confusion and/or impotence” in respect of monetary policy. We have more on this below:

22 July 2016 WE

 

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 Trump was “wowing” the crowds, the Republican one that is, newly installed Prime Minister Teresa May was quite vocal in respect of corporate UK, particularly in respect   ……

Charts:
1.  Indices Weekly
2. US House Pric Index V US Housing Starts
3. E-Z  Services PMI V UK  Services PMI
4. China Stock-Index V  China GDP & Ave House Price Index
5. Commodities Weekly

Table:

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

“Government should guide, not dictate.

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

 

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