Daily Commentary 01/04/2015

Equity markets gave up part of the previous day’s gains while investors ponder the reality of the global economic situation. Corporate earnings are on the decline in the US, as energy shares are hit hard by the plunge in commodity prices, led by Oil. Earnings have also been greatly impacted by the rise in the…

Daily Commentary 31/03/2015

Equity markets opened the week on the front foot, overnight, after the Chinese Central Bank announced the prospect of further monetary stimulus. This heartened global markets despite the stagnation from Europe. EU Confidence continued to spiral while German inflation was benign. Europe is headed towards deflation and are in danger of them suffering the same…

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…