Daily Commentary 24/04/2015

Equities continued to rise, led by a resurgent Nasdaq, which bested 15 year old dot.com levels. Global economic data was weak and earnings have also missed, on the revenue front, putting further pressure on Monetary Policy to do the heavy lifting. Chinese flash PMI contracted further, falling from 49.6 to 49.2, followed by a fall…

Daily Commentary 23/04/2015

Equities marched higher towards record levels again, boosted by stronger housing data, and improving corporate earnings. European markets were mixed with weak Consumer Confidence data and the Greek crises waiting in the wings. The ECB QE has continued to support a recovery in equities and a shot in the arm for investment. The EUR has…

Daily Commentary 22/04/2015

The equity rally stalled in the US after Asian and European markets soaked up the previous days moves. European markets ignored the ongoing Greek tragedy unfolding and the dip in ZEW confidence from Germany and the EU. Debt/GDP also crept up to 91.9, from 90.9, reflecting the underlying intrinsic economic crises over the single market.…

Daily Commentary 21/04/2015

The Chinese joined the currency war with monetary stimulus, lowering the Reserve Requirement Ratio (RRR), allowing an expansion of liquidity. This was a trigger for a big rebound in global equities and the US Dollar. The EUR dropped back to 1.0720, while the GBP slipped below 1.4900, the fight to the bottom is on! The…

Daily Commentary 20/04/2015

Global equities suffered a major correction to close the week, beginning in Asia and gathering momentum through European and finally US markets. The IMF warned Greece that they would not miss debt repayments and downgraded global growth prospects. The Grexit looks more likely and considering the damage the tiny economy has imposed on EU and…

Daily Commentary 17/04/2015

The Feds Vice Chairman, Fisher, confirmed a poor first quarter but assured markets the rebound was coming. He confirmed rate rises would come with the recovery, but economic data has been weak. Today Building Permits in the US fell 5.7%, while Housing Starts increased but missed expectations. This was enough to convince markets that interest…

Daily Commentary 16/04/2015

Oil prices surged overnight and equities were going along for the ride. Oil reached US$56/barrel and boosted energy stocks reviving the recent rally. The Feds Biege Book was bleak, revealing mixed Retail sales and weak Manufacturing across all measured areas. This confirmed the economic weakness, supported by recent data releases, and further delayed prospects of…