Global Economic News -Weekly Update 29/9/2014

Sept. 29, 2014 - PRLog -- Capetian Asset Management is a world-wide private equity firm with the resources and expertise to source, evaluate, and manage private investments globally in both developed and developing markets and across many industrial and commercial sectors.

Global Economic News -Weekly Update 29/9/2014

As the third quarter of 2014 draws to an end we see the Hong Kong markets hit 3mth lows and the US post better than predicted growth for the 3rd quarter.

In Hong Kong a mass protest has disrupted the financial district causing many banks to close for the day and speculation that the mainland Chinese may send in the troops should order not be restored.

The protestors, mainly students, are drawing attention to the lack of free choice for the coming elections to choose who will take over as the new Chief Executive. With Hong Kong receiving plenty of preferred treatment over their counterparts in Beijing many wanted to have an open election with candidates being selected based on merit. Beijing on the other hand is practically vetting the nominee's as they obviously wish to have a sympathizer on the island and someone who will toe the Beijing line. The protest was not a surprise to authorities as the organizers have been quite vocal on what, where and when they would be taking action. Late last night they were met with tear gas and reportedly rubber bullets but as the sun cam up police backed off and a more peaceful negotiation began. Whether calm will remain in the financial hotspot is yet to be seen.

Markets in Hong Kong reacted badly to the protests and dropped more than 2.3% during trading.

News out of the US buoyed local markets and is expected to continue as the week closes out.

Revised figures on GDP growth were released last week which saw the major indexes gain close to 1% on Friday, taking the back towards their records highs. Last month's forecast of an annualized 4.2% was revised up to 4.6% off the back of increases in Exports and Business Spending.

The increase is the fastest paced increase in 2.5yrs and confirms that the US economy is currently the best performing globally. A 11.1% rise in Exports along with a 9.7% increase in Business Spending helped push the revision forward and shows a significant improvement over the first quarter's 2.1% contraction. Consumer Spending, which makes up to almost two thirds of the US's GDP was up another 2.5% on the second quarter and is expected to continue into the fourth.

Markets in the US are expected to continue their run in positive territory and by the end of the week could be surpassing their record closes once again.

Key Market Data as of 29/9/2014:

Nikkei: 16,310.64 (+0.50%)

Hang Seng: 23,218.16 (-1.94%)

Dow Jones: 17,113.15 (+0.99%)

S&P 500: 1.982.85 (+0.86%)

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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.