Investment Markets Overview — W/E 3rd February 2017

“20”…. Is an interesting number, the maximum number of moves to solve a Rubik’s Cube, the starting number for the ancient Mayan numeral system and, according to “Symbolic Studies,” it’s a universal number that encompasses all the energies of the planets and the cosmos. It is also recognised as the attributes of the number 2 and 0, but regardless of whether any of these facts are important, it is certainly of relevance to the financial markets of late. The 20,000 Dow Jones Industrial Average “round number” was breached on the 26th January, held above it for 3-trading days but has struggled to surmount it until this week’s Friday session, whilst Snap, the company formerly known as Snapchat, announced its IPO intention which, if all goes to plan, will net the company some £20BN. €20BN is also the “margin of error”  of the €40BN to €60BN range muted by the UK’s former UK ambassador to the EU, Sir Ivan Rogers, as the exit charge demanded by the EU as the “bill to leave the EU.” The range says much about the appalling lack of attention to financial detail by institutions charged with spending “other peoples money,” perhaps none more so than the EU and explains why it’s bankrupt, in more ways than one. Meanwhile, three of the major Central Banks were on parade this week, the Fed, the Bank of England and the Bank of Japan, all of whom have long-held CPI inflation targets of 2% pa, that attribute of the number 20. Despite Trillions of $US, £GBP and ¥ of additional debt stimulus (other peoples liability) attempting to regain these targets, all have failed miserably, with the latest CPI rates stated at a respective 2.1% (debateable given the prior 3-month’s data averaging 1.6%) 1.6% and 0.3%. Even the ECB, who didn’t meet this week and is now holding 40% of all EU sovereign debt can only garner a 1.1% annualised CPI rate, despite a “negative-interest rate policy,” another “tool” deemed necessary to stoke inflation.

US stocks were busy going nowhere for most of the week, whipsawed by the slew of executive orders issued by President Trump, with the major indices saved from losses by the finance sector, buoyed by the re-examination of the Dodd-Frank rule and proposed regulatory reduction on banks:

3-feb-2017

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 . . .

  “Herding” was alive and well this week as demonstrated by a US “gallop poll” showing that 60% of those polled opposed President Trump’s ordering the construction of the US-Mexico border wall,  despite it being a central theme  ……

Charts:
1.  Indices Weekly
2. US Non-Farm Payrolls V US Personal Incomes
3. E-Z GDP V E-Z Retail Sales
4. Japan Monetary Base V Japan Business and Consumer Confidence
5. Commodities Weekly

Table:

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

                   “Herding Provides Insightful Clues” 

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

 

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