Global Indexes -Weekly Update 3/7/2014
As the first week of July closes to an end, globally, the markets have continued their run of good form seen in June.
With a short week in the US due to Independence Day, today should see a strong finish to the US markets which in turn will no doubt help placate the rest of the indexes tomorrow as they finish off the first week of the 3rd quarter.
The Dow and S&P are still breaking record highs as the US awaits on unemployment data which should see the unemployment rate back down to 6.4% for June, slightly lower than May's and back in line with April's drop. Employment seems to be the driver at the moment with the Fed looking at ways to get the jobs market fully back up to speed. Many analysts believe that they are already close to that stage and are calling for rates to be increased sooner than the mid 2015 date however comments from the Fed after their most recent meeting imply that the program they have in place is sufficient to see the country through till next year.
Asian markets were mute ahead of the US data and prior to a busy week out of China next week where we will see a range of indicators from imports and export data to balance of trade and inflation figures. The recent round of stimulus programs placed into effect by the Chinese government appears to be working and once their infrastructure plans start to take affect the local economy is bound to improve. Even with a reduction in forecast GDP growth the Chinese are pushing forward and recent data shows that the economy is back on track, all be it at lower levels than expected a couple of years ago. Japan too is seeing a potential turnaround as the government fights decades of deflation and a massive social welfare deficit caused by their aging population. The Japanese president has agreed several phases of reform engineered to bring the economy back up to speed.
In Europe, the majority of markets are holding their gains seen last month and are flirting with new highs. Both the FTSE and DAX are outperforming their peers at the moment and they can be accounted for being the driving force behind the recent Eurozone upturn. With continued manufacturing growth and the ECB's rate change last month the region as a whole is holding together and so long as no major banks fail in the near future situation of the likes of Greece, Cyprus, Ireland and Portugal should be a thing of the past.
Key Market Data as of 3/7/2014:
Dow: 16,976.24 (+0.07%) S&
FTSE: 6,816.37 (+0.20%) Dax: 9,911.27 (+0.09%)
Hang Seng: 23,527.52 (-0.09%) Nikkei 15,342.15 (-0.18%)
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