Global Economic Update - Mid October Review 2014

Oct. 14, 2014 - PRLog -- Hexagon Capital Management is a privately held wealth management company that manages hundreds of client assets in a wide range of products and services with a non biased, client orientated program that is tailored to each individual or corporate requirement.

Global Economic Update - Mid October Review 2014

Asian markets gave a mixed response today after a steep decline in Wall Street yesterday.

Major indexes in Asia have had varying responses to the sell off seen yesterday. The Nikkei 225 has its steepest decline in almost 2 months whereas the Hang Seng managed to see gains just as protestors in the CBD started to lose some ground.

Japanese markets saw loses in the region of around 2.5% throughout the day as concerns over the global economic outlook were voice by the IMF. Lacklustre responses from Central Banks have been on of the key reasons economies in Japan, Europe and developing countries are struggling right now according to Ms. Lagarde, the Head of the International Monetary Fund.

Chinese indexes fared better as their latest data suggests a far stronger rebound in their import and exports figures for September. Imports were up 9% and exports broke a 15% increase. This data was far better than forecast and many believe that the data which said that Hong Kong was China's biggest trading partner in September could be simply a ruse to get businesses and business leaders in Hong Kong to appreciate their ties with Beijing and back away from supporting protestors currently occupying certain areas of the Central Business District.

European markets managed to avoid the sharp decline yet are expected to open lower today as the ECB faces the European Parliament over its latest policy on Stimulus for the EU. Mario Draghi will have his programs scrutinised today as they look to establish whether the massive stimulus package can go ahead. This comes just after a recent bank 'Stress Test' which has caused concern, its results estimated there could be as much as $870bn shortfall in actual bank reserves.

The stimulus is seen as a way to stimulate the currently stagnating European economy however there are plenty of advocates against the plan as essential the ECB is planning on buying Asset Back Securities, very similar to the securities that effectively caused the 2008/09 financial crisis.

In the United States, volatility has returned to the markets once more as investors see geo-political tensions having an effect on earning season. One thing that may surprise is that the price of oil over the last few months have been significantly low and will most definitely have a positive effect on many large corporations reporting over the next week or so.

Many believe we are just seeing a natural correction in the US. The markets have been out-performing what should have been a cautious period and many will take the losses seen yesterday as an opening and many will see it as the beginning of a bear run.

Once we have a steady stream of earnings results through the mill, no doubt the real implications of cheap oil at $88.23 a barrel will start to show its significance.

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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 Hexagon Capital Management. All market data within this release is for your general information and enjoys indicative status only. Hexagon Capital 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.