Global Economic Outlook -Weekly Update 22/7/2014
Markets reacted cautiously on the first day of trading after a weekend that saw a downed Malaysian Airline passenger plane in the East of Ukraine.
Despite the situation causing serious concern over security in the region the markets still managed to hold relatively firm with the global indexes looking to see whether knee jerk reactions by the US would have a more far reaching effect.
Over the weekend the US enhanced sanctions on key players in the Russian cabinet and targeted their 2 main energy suppliers along with several banks. By removing their ability to source cheap credit the US is looking to force Moscow to intervene and work with Kiev to settle the crisis before further violence take the region to a higher risk level. With the US pressuring the EU to ramp up their sanctions on Moscow the current climate in the EU is one of nervousness. The more pressure placed on Vladimir Putin to rein in the pro-Russian separatists and bring an end to the violence, the more potential for a return to a Cold War standoff we come.
All the while, earning season keeps making the news as over 68% of S&P 500 companies have beat earnings expectations so far according to a Reuters poll. With big hitters like Apple, McDonalds and Microsoft all reporting today along with a host of economic indicators, it should be a busy day for the markets.
Whilst Asian markets were muted, European indexes should open up slightly higher as with the US indexes as volumes start to return and investors look to alternatives to safe haven investments such as gold and treasury bonds.
Key Market Data as of 22/7/2014:
Dow: 17,051.73 (-0.23%) S&
FTSE: 6,743.99 (-0.23%) Dax: 9,612.05 (-1.11%)
Hang Seng: 23,708.47 (+1.37%) Nikkei 15,343.28 (+0.84%)
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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.
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