14th May 2014 - Indices and Economic Report
Global Market Data as of 14th May 2014
FTSE 100 6873.08 (+0.31%) Dax 9,754.43 (+0.54)
CAC 40 4,505.02 (+0.25%) BEL 20 3,156.38 (-0.23%)
Madrid IBEX 10,587.20 (+0.19%) Zurich SMI 8,543.58 (-0.02%)
Moscow MCIEX 1,384.56 (+0.72%) Sydney ASX 5,475.90 (+0.01%)
Nikkei 225 14,383.55 (-0.29%) Hang Seng 22,579.93 (+1.02%)
Shang SSE Comp 2,050.73 (-0.10%)
Dow Jones 16,715.44 (+0.12%) NASDAQ 4,130.17 (-0.33%)
S&P 500 1,897.45 (+0.04%)
Asian markets were mixed today. The Nikkei saw some profit taking seeing it look to end the day relatively flat despite an air of positivity in the region. The Hang Seng was close to three week highs after the Chinese Central Bank urged mainland banks to speed up the processes and delivery of home loans. This pushed up property and banking stocks. Bold news out of Australia see's the government looking to half their deficit in just one year. In an attempt to reduce the deficit before the next round of elections the Prime Minister Tony Abbott announced that the target of a $20bn AUD reduction would be painful but worth it in the long run. With a reduction in foreign aid, state welfare and several government entities being downsized it is projected that there could be up to 16,500 jobs lost in the public sector. This did little to effect the ASX as it ended the day flat, however tomorrow may see the local market react with more aggression as a better understanding of a reduction from $50bn AUD to $30bn AUD is better understood.
European markets continue their run with many seeing multi year highs and the Dax and FTSE 100 both close to an all time highs. With continued support that the Eurozone is well on its way to recovery and a possible political solution, as opposed to a military resolution in the Ukraine the area is poised for the next few days and the economic data due to be released. Later today will see Industrial Production figures for the EU, with YoY data expected to be in the region of 1.6% higher, however the MoM data may prove less attractive, with little or no gain. Tomorrow will see a whole host of data on inflation and GDP which is expected to be positive. The main driver seems to be the ECB's intentions to implement stimulus however with the markets reacting the way they are, Mario Draghi, the ECB Chairman may wonder whether stimulus across the whole of the Eurozone is required when just their acknowledgement of the situation appears to be helping settle the local markets and strengthen the financial outlook in the EU.
Markets in the US continued to push higher even though consumers checked their spending in April. Retail sales dropped by 0.1% but did little to sour the Dow and S7P which both finished the day on record highs. Reports from Cisco that they will again miss revenue targets didn't help the Nasdaq which managed to end the day's trading just under its previous close. Today we can expect PPI data, the Producers Price Index should have rebounded from Marches drop of 1.5% and analysts expect an increase of just 0.2% with the poor data mainly being attributed to the significantly bad weather seen at the beginning of the year. Tomorrow provides us with Industrial and Manufacturing Production figures along with a slew of inflation data that should help the markets continue their strong performance.
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