Thungen Financial 23rd June 2014 - Global Index Update
Global markets start the week on a positive front as they saw another record close in the US last week and unexpected positive data out of China this morning.
Asian markets started the week out well with positive data out of China from HSBC. HSBC's preliminary PMI was expected to be in the region of 49.7 according to Reuters. Today, for the first time in 6mths, saw it break the magical 50. May's 49.4 was seen as disappointing so figures for June of 50.8 were greatly received. The last time it broke 50 was December 2013 and June's data was attributed to expansion in both domestic demand and overseas orders. This will add weight to the recent rounds of 'mini' stimulus the Chinese government put in place since the start of the year. Originally seen as very small steps, this news from HSBC will no doubt be taken that the programs implemented have started to take an effect on the local economy. The news didn't do much for the local markets however, both the Hang Seng and SSE Composite didn't hold their gains, this may be due to the run of IPO's the country is expecting to be released by the end of the month.
Markets in Europe were expected to open higher but managed a very mute start to the week. Today will see the Markit's Flash Comp, Manufacturing and Services PMI, all of which are forecast to be slightly higher than May's. With the Eurozone repeatedly showing growth in manufacturing and orders it will be a surprise if they don't come close to expectation and is the only real data until Friday whereby we will get the confidence and sentiment figures. With the ongoing issues in the Ukraine and, as of last week, renewed violence in Iraq, energy is of paramount importance this week and may reflect in the markets as oil edged over $115.00 per barrel last week.
The S&P 500 and Dow Jones again managed record closes on Friday last week as investors continue to look for risk after the Fed confirmed they won't be changing their stance any time soon. Reducing their asset purchase program by an additional $10bn in July and looking to employment before interest rates helped confirm the current sentiment and solidified that the Fed believes the economy is in expansion, not recovery. With the record closes of last week, the Dow is now up 2.2% year to date and the S&P has managed 6.2% year to date. This week see's a range of data out of the US, starting with today and Markit's Manufacturing PMI flash, existing homes sales data and the 3mth and 6mth bill auction. Later in the week we will see additional housing data, GDP Growth figures and a whole host of personal spending numbers which will be a good indication as to whether the States is performing as well as the Federal Reserve believes.
Asian Markets as of 23rd June 2014:
Nikkei 15,369.28 +0.13% SSE Comp. 2,024.27 -0.12%
Hang Seng 23,068.95 -0.54%
ASX 5,432.70 +0.58%
European Markets as of 23rd June 2014
FTSE 6825.20 +0.25% Dax 9,987.24 -0.17%
CAC40 4,541.34 -0.48%
BEL20 3,166.15 +0.18% Zurich SMI 8,701.61 +0.31%
MICEX 1,499.11 -0.34%
US Markets as of 23rd June 2014
S&P500 1,962.87 +0.17% Dow Jones 16,947.08 +0.15%
NASDAQ 4,368.04 +0.20%
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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.