Investment Markets Overview — W/E 7th October 2016

Confidence Crisis…..is increasing against Central Bankers, according to Dennis Shen, a post-graduate of the London School of Economics (LSE) in a recent column for the European Politics and Policy (EUROPP) a blog run by the LSE, albeit that both the LSE and the EUROPP distance themselves in respect that the comments are those of the author, not them. Shen refers to a crisis in confidence brought on by diminishing returns and unintended consequences of the CBs’ existing policies, such as zero and/or negative interest rates and quantitative easing, going on to observe that the failed targeting of inflation (CPI) and grossly distorted financial asset price (s) witnessed may have been avoided IF they had targeted the monetary experiments against financial asset-inflation, which is an interesting point, albeit both unknown and now too late. Meanwhile, the distortions already created are starting to unwind, courtesy of the markets as repeatedly warned of within this overview and accompanying blogs.

The markets voted aggressively on interest rates, currencies, including Friday’s “fat finger” British Pound event, and commodities this week, suggesting that the aforementioned crisis of confidence is already in play:

7-oct-15-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 . . .

  So there we have it, a wild week with two “flash-crashes,” the British pound and $Gold, a rare event indeed.……

Charts:
1.  Indices Weekly
2. US Unemployment Rate V US NFP
3. E-Z PPI V E-Z  Retail Sales
4. OZ Commodity Index V  OZ Retail Sales
5. Commodities Weekly

Table:

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

                               “Perhaps this is what they call the new normal?

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

 

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