Thungen Financial Weekly Update 25th March 2014
The first quarter of 2014 is drawing to a close and the major indexes as a whole have performed rather mutely according to some analysts. With little in the way of positive news coming from anywhere, it is no surprise that the markets appear undervalued at the moment.
News out of China continues to raise concerns regarding the second largest economies ability to continue its growth. Disappointing data out of China regarding its factory output has again drawn attention as an 8mth low on both the HSBC PMI and official Chinese PMI figures are released. The 7.5% growth rate target for 2014 is being touted as far too ambitious as the country's economy strains under the global economic turndown.
Asian Markets as of 24th March:
Nikkei 14,473.23 -0.02% SSE Comp. 2,066.31 +0.92% Hang Seng 21,730.59 -0.51%
ASX 5,351.00 -0.22%
The European economy has expanded positively for the 9th months in a row. Figures show a first quarter growth rate of just 0.5% solidifying that the Eurozone is firmly on the road to recovery. Data out of France seemed to confirm this as better than expected PMI figures were released this week. The private sector in France grew against analyst forecasts and reported a 51.6 on the PMI index as opposed to a 47.9 for last month, which surprised many a commentator. With a return to a figure above 50 confidence will no doubt be high in France if not all of the EU as concerns over Eastern Europe play on the EU members minds.
European Markets as of 24th March:
FTSE 100 6,520.38 -0.56% Dax 9,188.76 -1.66% CAC40 4,276.34 -1.35%
BEL20 3,052.28 -1.03% Zurich SMI 8,198.01 -1.10% MICEX 1,297.90 -0.71%
News out of the US last week regarding QE and possible ways to reduce it by 2015 had some analysts voicing concerns over the future of the economy. Seen as a positive move initially, reduction in bond buying by the Fed over the coming months soon changed Wall Street's minds as money left the markets. When it will return is still up for discussion as investors wait to see the outcome of events in Asia and Eastern Europe.
US Markets as of 24th March:
S&P500 1,857.43 -.048% Dow Jones 16,276.70 -0.15% NASDAQ 4,226.36 -1.17%
There are several economic indicators expected this week out of the US. Tuesday will see New Homes Sales and Consumer Confidence figures released and later in the week GDP and Jobless Claims data is expected.
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DISCLAIMER The views, opinions, findings, and conclusions or recommendations expressed on this service are those of the author(s) and do not necessarily reflect the views of the Thungen Financial Advisors. All market data within this release is for your general information and enjoys indicative status only. Thungen Financial Advisors does not accept any responsibility for its accuracy or for any use to which it may be put. All share prices and market indexes delayed at least 15 minutes. 52 week high and low values are calculated from close price data.