Tradeline Financials - Global Economic News Review - Week 39, 2014

Sept. 22, 2014 - PRLog -- Tradeline Financials is an independent, diversified financial services firm catering to all types of investors. Our goal is to understand, anticipate and meet our clients' changing financial needs with the vast array of high-quality products and services at our disposal.

Tradeline Financials - Global Economic News Review - Week 39, 2014

Markets in Asia saw steep losses early on Monday as key data due tomorrow from China is expected to disappoint.

A flash Manufacturing PMI due tomorrow could be under the 50 point scale used to gauge the sectors health. If it does come under it could signify a continued slowdown in the Chinese economy and would be in line with recent data that has started to show the same. Hong Kong markets which are sometimes immune to the mainland news could not stem the drops especially as there is a weeklong strike by the student population which is possibly the precursor to more substantial and disruptive protests scheduled for the coming weeks. The protesters are opposing Beijing's involvement in the selection process for who can stand for the next Chief Executive position next year. The Chinese government understandably wants a friend of Beijing to take the post and have made it clear that only candidates that meet their criteria will be eligible to stand for election.

European markets will start the week lower ahead of Mario Draghi speaking at the European Parliament later today. The Euro is at a 14 month low and the stimulus packages announced recently have not seen the subscription levels many thought. Whilst reducing their benchmark rate to 0.05% they also made €400bn available to banks to push lending to businesses and help drive the EU economy forward. The loans which are available for up to 4yrs at just 0.15% annual interest were taken up by 255 banks since its announcement. €82.6bn was issued however it is predicted that as much as €100-€200bn could be taken out of the fund this week before the ECB looks to start its bank health checks in a few weeks time. The Asset Quality Review should provide a picture of the financial economy in Europe and may prove to be instrumental in further stimulus which could be announced in October. The US Treasury Secretary has just urged the ECB to increase their programs and mirror what the Federal Reserve did and look to a Asset Backed Securities buying program however many feel that following the US's lead is not particularly the right path.

US markets had a quiet end to the week as the world's largest IPO saw its first day of trading. Opening on the NYSE Alibaba saw a 38% gain on its first day solidifying its backers belief in the company. With additional shares released to the market the company whose listing price was $68.00 ended the day just under $100 at $98.39 raising $21.8bn and valuing the company at $231.4bn, bigger than Amazon and Facebook. If the underwriters exercise their option to purchase further, the company will break the all time record held by Agricultural Bank of China back in 2010. Local indexes are expected to open lower after poor data out of Asia and key news due out of Europe.

Global Indices as of 22nd September 2014:

S&P500 -       2,010.40 -0.05%

Dow Jones -  17,279.74 +0.08%

FTSE 100 -    6,837.92 +0.29%

DAX -          9,799.26 +0.01%

Hang Seng -  24,001.72 -1.25%

Nikkei -          16,205.90 -0.71%

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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 Tradeline Financials. All market data within this release is for your general information and enjoys indicative status only. Tradeline Financials 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.