Investment Markets Overview — W/E 21st April 2017

“7th May 2020”…… was to be the date of the UK’s next General Election, in line with the fixed-term Parliaments Act 2011. However, the British Prime Minister, Teresa May, called for an 8th June 2017 snap election this week and was backed by the two-thirds majority required from the 650 MPs in the House of Commons. In fact the vote to support the election decision was a unanimous 522 to 13. The early polls and media speculation predict a land-slide win for May and the Conservative party, although my “May’s Mixed Messages” Socionomist view suggests that caution is warranted. Either way it is the first snap election for the UK since 1974 when Ted Heath, ironically the conservative leader who took Britain into the EU, reached out to the electorate following an impasse with the National Union of Mineworkers over their strike intentions and the unstable political position following the 1973 EU referendum. In the event the gamble was lost due to the Ulster Unionists distancing themselves from the Tories and the Liberals, under Jeremy Thorpe, declining Heath’s offer to form a coalition government. Heath wasn’t helped by dire economic news at the time, which had followed a 30% decline in the FTA All-Share Stock-index, or the resignation during the campaign by the outspoken Conservative MP Enoch Powell, who had already announced that he could not stand for re-election on the Conservative manifesto, urging people to vote against Heath, because of the latter’s policy toward the European Economic Community. In a speech in Birmingham on 23 February 1974, Powell claimed the main issue in the campaign was whether Britain was to “remain a democratic nation … or whether it will become one province in a new Europe super-state“; he said it was people’s “national duty” to oppose those who had deprived Parliament of “its sole right to make the laws and impose the taxes of the country.” Fast forward to this week’s snap election call and it’s of interest to note that former conservative Chancellor, George “3-jobs” Osborne announced his intention not to stand.

It was another 4-day trading week for Europe, OZ and Hong Kong but not so for Wall St which led an increase in volatility for global markets. The trend for stocks was lower until options expiration Thursday when the bears took it on the Mnu-chin as the new Treasury Secretary turned up with comments on tax-breaks for companies and individuals, subsequently confirmed by “the Donald” and to be announced next week.

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 . . .

 This Sunday sees the first round of the French general election against a backdrop of yet another violent attack on the streets of Paris. The polls reflect considerable uncertainty with four very diverse candidates, Le Pen, Macron, Jean-Luc Mélenchon and François Fillon as front-runners  ……

1.  Indices Weekly
2. US Housing Starts V US Existing Home Sales
3. E-Z Household Consumption V E-Z Consumer Confidence
4. China Retail SalesV China GDP
5. Commodities Weekly


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

                     “History may not repeat exactly, but it sure does rhyme” 

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



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