Tradeline Financials - Global Economic Review - Week 29, 2014
As markets globally continue to post and hold gains, this week will see a range of economic data which will look to confirm the current positivity seen in the markets.
In the US the Federal Reserve Chairman, Ms. Janet Yellen will make another speech today after spending 2 days in front of the Senate. With the main indexes in the States posting record highs almost on a daily basis many will be looking for news on interest rates yet it is not expected to be mentioned in any detail at this stage. Since taking the chair Ms. Yellen's speeches have all basically been the same. Today is not expected to be any different. Economy in expansion, employment almost at full pace and that the asset buying program will be ending in October, when clarification on interest rates being increased will be announced is any ones guess at this time.
On Wednesday, China releases their GDP Growth rate forecasts. Expected to be just above 2% for the month and 7.4% for the year this is in line with expectations. With exports being the major issue in China at the moment, the release of GDP data and Retail Sales figures on the same day will be a good indicator as to whether the domestic demand we have been advised is increasing, is making a indent into the lack of new export orders. The local government has been calculated in its response to its perceived faltering economy and data released today confirms that the policies put in place to speed up bank lending are indeed working as new loans were well above forecast and came in at 1.08tn Yuan as opposed to the predicted 915bn Yuan.
Europe see's a new EC President swore in tomorrow, the same day as it announces its Trade Balance. Analysts see this as having reduced from last month's by about €1.5bn, down to €14.2bn largely due to the poor manufacturing and production data seen last week. European markets have been far more volatile recently than their foreign counterparts and could be seen as a true indicator of the global economy. With the ECB's new fangled attempt to push the economy forward with negative rates and incentives to lend we should start to see the local economies start to show some resilience to the poorer performing countries in the EU and as a whole should start to solidify the Eurozone back to an industrial power.
Major Indices as of 15th July 2014:
Hang Seng - 23,440.93 +0.40%
Dow Jones - 17,055.42 +0.66%
FTSE 100 - 6,746.14 +0.84%
DAX - 9,783.01 +1.21%
MICEX - 1,483.41 -1.09%
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