Economic Global Market Update - Week Ending 27th June
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The majority of global markets took a step back yesterday as concerns over oil supplies out of Iraq started to take effect.
Markets in Asia were mute today as the situation in Iraq starts to filter through. The Nikkei was down almost 1% despite the Prime Minister, Shinzo Abe looking to implement a third round of stimulus measures in an attempt to pull the Japanese economy back on track. The latest announcement relates to corporate taxation. Currently all large companies operating out of Tokyo pay up to 36% corporation tax and this is looking to be brought below 30% over several stages throughout the course of next year. This along with the recent sales tax increase from 5% to 8% which is scheduled to increase again in October 2015 are seen as small measure when compared to the situation Japan faces. The country has seen deflation for almost 2 decades and has one of the lowest birth rates on the planet. With the Bank of Japans current plan many analysts view the stimulus and changes needing several years to have full effect.
Nikkei 225 at 15266.61 (-0.71%) Hang Seng at 22,878.26 (-0.01%)
SSE Comp at 2,021.61 (-0.61%)
European indexes pulled back yesterday after news that manufacturing in the region had marginally increased. Energy concerns will no doubt be at the forefront of many investors in the region as concerns about natural gas out of Ukraine and the speed of which violence in Iraq has erupted. The 2nd largest OPEC exporter has seen renewed attacks across its northern area and the largest refinery has been taken by rebels leading the US to look to send further troops back to Iraq to help stabilize the situation. Friday see's consumer and business confidence data along with industrial and economic sentiment which will give a good indication as to the Eurozones current mentality. Of late we have been seeing reports of a return to expansion, with just a handful of the EU members still not performing on par with the rest. If Europe can escape any major energy issues over the next month, the region should continue to post gains in all areas.
FTSE 100 at 6,787.07 (-0.20%) Dax at 9,938.08 (+0.17%)
CAC 40 at 4,518.34 (+0.06%) BEL 20 at 3,145.44 (-0.48%)
IBEX at 11,105.90 (-0.11%) Zurich SMI at 8,673.27 (+0.33%)
Markets in the US reversed early gains on Tuesday after initial optimism over housing data took a back seat to the potential oil crisis in Iraq. New home sales were up 18.6% on May 2013 figures and housing stocks were at their highest level since May 2008 with the largest increase seen since January 1992. The impressive figures needed to be reined in however as month on month growth is at a far slower rate. This news helped move the S&P 500 to a 4th record high in early trading but slipped by 0.50% in the afternoon, its largest fall since June 12th. The rest of the week is full with economic indicators, mortgage data, jobless claims and a whole host of other figures will be released over the next 3 days and should help ease the markets about the situation at home.
Dow Jones Closed at 16,818.13 (-0.64%)
NASDAQ Closed at 4,350.36 (-0.42%)
S&P 500 Closed at 1,949.98 (-0.64%)
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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.
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