Investment Markets Overview — W/E 28th October 2016

Volatility….. is a statistical measure of the dispersion of returns for a given security or market index, which in plain English means that during a period of lower volatility a security’s value does not fluctuate dramatically, but changes in value at a steady pace over a period of time and vice-versa when volatility rises. It has been uncharacteristically low across the main stock-indices of late, but not within the short end of the Sovereign debt markets. A glance at the 2-year yields for the US, the Euro-Zone and for Japan, show an “annualised” jump of a respective 360%, 260% and 450% over the past few months, albeit from very low levels, but this pales into insignificance when compared to the UK, where the cost of the government to borrow for 2-years has rocketed by 300% or 1000% annualised since the historical low of just over 1-month ago. Aside of this confirming that interest rates are not controlled and have never been controlled by Central Bankers’, it also confirms that the market, a euphemism for a crowd of human beings who either buy and sell or lend and borrow, agree that a 5000-year low in compensation for lending even to governments is insufficient for the risk of them holding the debt. Perhaps it’s just coincidental this week that Bank of England boss Carney is rumoured to be “jumping ship?”

 Cracks have started to appear within the concentrated few stocks which have held aloft the major US stock-indices, as both Apple and Amazon announced disappointing quarterly results this week

28-oct-16-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 . . .

  Returning to the Sovereign debt rout alluded to within the lead paragraph, it may only be in the early stages but the bond-bulls ……

Charts:
1.  Indices Weekly
2. US GDP V US GDP X Exports and Inventories
3. UK Mortgage Lending V UK GDP
4. Japan CPI V Japan Household Spending
5. Commodities Weekly

Table:

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

                                       “Interesting times Indeed

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

 

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