2nd July 2014 - Global Markets Update
Asian Market Data as of 2nd July 2014
Moscow MCIEX 1,476.38 (-0.34%)
Nikkei 225 15,369.97 (+0.29%)
Hang Seng 23,470.21 (+1.21%)
Shang SSE Comp 2,056.39 (+0.29%)
China's Purchasing Managers Index grew at its fastest pace for 6mths in June according to latest figures. Any figure above 50 shows expansion and June's 51.0 just outpaced May's 50.8. This is seen as clarification that the measure implemented since the beginning of the year have started to take effect. The government has pledge funds for several regions to see infrastructure improvements such as roads, rail and air networks, along with the extension of tax breaks for small business to name but a few. It is suggested that the Chinese economy will miss its annual GDP growth target of 7.7% with a revised forecasted at 7.5% for 2014.
FTSE 100 6,810.86 (+0.12%) Dax 9,919.04 (+0.17%)
CAC 40 4,454.35 (-0.15%) BEL 20 3,154.75 (-0.18%)
Zurich SMI 8,622.82 (+0.17%)
Markets in Europe continue to flirt with record highs as the majority of members see economic expansion as the year progresses. Since its announcement on 5th June the ECB has been relatively quiet as it waits to see the full extent of reactions to its policy change last month. With its reduction on rates and a negative reserve rate the EU as repeatedly posted significant gains. This along with data suggesting that its main members are starting to see real growth this year in manufacturing and factory output will certainly help placate investors within the EU. Later this week will be the ECB's rate decision. With no news stimulus plans expected and a range of GDP Growth and PPI data due towards the end of the week the majority of markets in Europe should stay in the green.
Dow Jones 16,956.07 (+0.77%) NASDAQ 4,458.65 (+1.14%)
S&P 500 1,973.32 (0.67%)
US factory activity continued to expand, all be it slightly slower than last month. The Institute for Supply Management posted a 55.4 for May and June's 55.3 will help keep optimism high in the US. With economic data implying a full recovery and an economy in expansion it is no wonder that the S&P and the Dow Jones have posted record high closes week after week. With risk appetite not looking to reduce and a short trading week due to Independence Day on Friday it is expected that the local markets will continue their Bull Run. Whether we will see any correction anytime soon is still to be established. Janet Yellen will speak at an IMF conference later today with nothing new scheduled to be announced we can expect Ms. Yellen to repeat her line that the country is expanding and that unemployment is the next area to be addressed as they continue to reduce their asset purchasing program.
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