Global Market News & Reports - Weekly Update 13/10/2014

Oct. 13, 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 13/10/2014

As markets globally saw a steep decline at the close of last week, more red is expected to be seen at the beginning of this week as they look to data out of China and Europe to give some indication as to the true state of their respective economies.

Asian markets were tentative in early trading following on from the onslaught seen in the US on Friday. The region's major indexes are now at 7mth lows and with Japan on holiday today and data out of China being seen as positive, if not that reliable. Exports have increased by 15.3% over the same period of 2013, far higher than the forecast 12%. Imports, a key sign that domestic demand is increasing came in higher than expected too. At 7% higher than last year it was 4% higher that forecaster 3% prediction.

Europe will probably open 1% lower today as the ramifications of last week's close and very poor data out of Germany continue to hammer the continent. Germany, Europe's largest economy has see significant falls in productivity and output which has largely been placed on the current sanction with Russia and the poor performance of its fellow EU members. France saw its sovereign rating go to negative after Standard & Poor reduced their score. The French are in some serious trouble at the moment and this is also reflected in their current political situation too with far right leaders starting to receive ore support.

As the rest of the world struggles to show consistent growth, just as the US exits its QE program later this month, volatility returns to the markets. The CBOE Volatility Index managed to break a 2yr high late last week, bring many to suggest that the recent good form of the local markets may see some serious fluctuations soon. The markets in the US have been going from strength to strength over the past few months as commodities and bonds have fallen globally. Volatility was almost a thing of the past, however it has returned with a vengeance. Most recently the Fed has been looking at when they will be able to increase interest rates, latest comments this weekend now suggest they may look to delay raising rates until the global economy starts to recover, not just the US economy, whihc is seen as in expansion.

This week will be a good indicator as to investor sentiment. If the markets continue to see red and volatility continues to be in the picture, we could see the start of the correction many analysts have been saying is long overdue.

Key Market Data as of 13/10/2014:

Nikkei 15,930.39 (Closed)

Hang Seng 22,978.33 (-0.48%)

Dow Jones: 16,544.10 (-0.69%)

S&P 500: 1,906.13 (-1.15%)

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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.