Major Global Economic and Market Update 12/6/2014

June 12, 2014 - PRLog -- Capetian Asset Management is a world-wide private equity firm with the resources and expertise to source, evaluate, and manage private investments globally in both developed and developing markets and across many industrial and commercial sectors.

Major Global Economic and Market Update 12/6/2014

Globally the markets took a breather yesterday ahead of the two days filled with economic indicators across Asia, Europe and the US.

Ahead of Retail Sales and Industrial Production data tomorrow China announced an additional stimulus package for the Yangtze River and its surrounding provinces and municipalities. Aiming to bring the inland provinces closer to Shanghai the improved road, rail and airport network will bring better infrastructure to the region that supplies over 40% of Chinas overall GDP. Along with this they have announced intentions to encourage banks to lend more to exporters in an effort to boost shipments. Although exports increased in May, imports were down 1.6% on 2013 and the general sentiment is that demand may not be as high as the government hoped. Retail sales figures are expected to be slightly down and Industrial Production is forecast to have increased for May.

European markets took a step back yesterday, albeit marginally. Still close to individual highs the indexes are starting to factor in the ECB rate decision and added concerns over the situation in Ukraine as a resolution appears to be further out of reach than initially thought. Today, data on the Eurozone Industrial Production is due and forecasts show this to be significantly higher than last month as EU member start out in 2014 in earnest. Tomorrow see's the announcement of the Balance of Trade. Last month saw the BoT at €17.1bn, largely put down to the inclement weather seen in northern Europe at the beginning of the year, analysts predict a figure closer to €10.9bn for May. If a solution can be found in the Ukraine soon there is a good chance that the gains seen in the past few months could last. If a resolution isn't forthcoming anytime soon there is a serious risk of Russia turning off the natural gas tap and many EU members fear that would seriously affect their energy situations.

US indexes took a step back yesterday and the S&P 500 closed at 1,943.89, its biggest dip in 3 weeks. Profit taking and caution ahead of a slew of economic data was the main culprit and despite this the main bourses are still holding the gains of late. Later this afternoon a bunch of data is released, notably Retail Sales which is expected to be higher, Initial Jobless Claims which should be close to last month's figures and a range of data from the Import/ Export Price Index and Business Inventories. On Friday, Core PPI data is released and will close the week out, hopefully on a high note.

Key Market Data as of 12/6/2014:

Nikkei: 14,966.93 (-0.68%)          Hang Seng: 23181.68 (-0.33%)

FTSE: 6,838.87 (-0.50%)          Dax: 9,949.81 (-0.79%)

Dow: 16,843.88 (-0.60%)          S&P 500: 1,943.89 (-0.36%)

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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 Capetian Asset Management. All market data within this release is for your general information and enjoys indicative status only. Capetian Asset Management 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.