Global Economic Review -Weekly Update 6/10/2014

Oct. 6, 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 Review -Weekly Update 6/10/2014

Markets in Asia started the week in positive territory as Japan reacted to strong employment data out of the US and Chinese markets see gains as protestor numbers start to subside.

The Nikkei gained almost 1 and a half percent after news that the US unemployment figure had came in under 6%. The data for September shows a 5.9% rate for unemployment, the first time it has been that low since July 2008. The data immediately saw strength in the dollar which always has a positive effect on the Japanese economy as it is seen as potential for US orders to increase.

In the US, the markets closed out the week with a strong day of trading. Gains of over 1% across the major indexes saw them close to record highs and many believe that with the renewed belief in the economy the Federal Reserve may well look to increase interest rates far sooner than previously forecast. Their QE is scheduled to finish this month and many expected rates to increase towards the middle of next year however with the countries performance in the second half of the year being so strong, many feel this could be moved forward to the earlier part of 2015.

Whilst the US is exciting its stimulus program, Europe and the ECB are just starting what is in effect their own form of QE. After reducing their benchmark rate to an unheard of 0.05% and making a large pot of funds available to the European Banks the ECB now has to resort to Asset Buying, after a very small percentage of the available capital was taken up. The European Central Bank with Mr. Draghi at its head will start to purchase Asset Back Securities as of this month and they intend to make roughly €1 trillion available.

The news helped the European markets have a good end to the week and with the news out of the US and a positive start in Asia for the week, markets in Europe and the US are expected to follow suit and continue to see gains.

Key Market Data as of 6/10/2014:

Nikkei 15,930.39 (+1.41%)

Hang Seng 23,183.60 (+0.52)

Dow Jones: 17,009.69 (+1.24%)

S&P 500: 1.967.90 (+1.12%)

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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.