Daily Commentary 30/03/2015

A quiet finish to the week with little in the way of economic data releases. US GDP missed expectations of 2.4%, coming in at 2.2%, surprising few. The University of Michigan Confidence reported a rise but this was little to analyst and equities were steady. Yelen’s commentary was in line with expectations and the Dollar…

Daily Commentary 27/03/2015

European markets absorbed the losses that hit US markets in the closing session of the previous trading day. Equities were hit hard as growth remained temperate and confidence weak. French GDP was 0,1%, which is better than contraction, but little more. German Consumer Confidence improved while UK Retail Sales managed to continue a good news…

Daily Commentary 26/03/2015

Equities turned south overnight lead by a major sell-off in the tech sector. The NASDAQ has been testing the highs prior to the tech-bubble burst all those years ago! It may be that bubble is stretched once again, ready to burst, but will hold until the liquidity taps are turned off by the Fed. Durable…

Daily Commentary 25/03/2015

Equity markets drifted lower overnight with an ocean of data confirming a stagnation of growth in Europe and sluggish gains in the US. Manufacturing PMI in Europe was flat, giving little confidence to the train wreck that is the single currency, which drifted around 1.0900. The rebound in the single currency is solely due to…

Daily Commentary 24/03/2015

Equities continued to live off the Feds reluctance to raise rates with flows in to equities and bonds. Fed member Fisher, commented that ‘interest rate rises may be warranted by year end’! Any commentator and student of the Fed would realize the emptiness of their rhetoric. US and Global economies are not growing at a…

Daily Commentary 23/03/2015

Volatility continued, with equity markets jumping again, fueled by global QE. Monetary Policy is loose, in the extreme, and this is driving equities and bonds higher. The currency wars are well under way, with monetary policy driving currencies lower, to gain trade sector advantage. In Europe, Greece is negotiating an extension of the bailout, which…

Daily Commentary 20/03/2015

Equity markets gave up the previous days Fed gains but the Dollar did not recover. Yellen is playing a dangerous game with monetary policy. The massive, unprecedented expansion of liquidity has spurred the rally in equities and corrupted financial markets. The cheap money has flowed freely into higher return investments of which equities are the…