Global Indices & Markets News
Global equity markets update
Investors’ sentiments picked up gradually after the “fiscal cliff” has been solved in the first week of January. U.S. S&P 500 Index rose by 0.38 percent last week. Japan's Nikkei 225 Index rose 1.06 percent last week and was one of the best performing equity markets in Asia- Pacific. It booked ninth straight week of gains. The comment from Japan’s Prime Minister weakened the Japanese Yen and softer yen boosted the shares of exporters.
Japan’s PM and JPY
Prime Minister Shinzo Abe said the Bank of Japan (BOJ) must set a 2 percent inflation target and make it a medium-term, not long-term. Abe also said the government would examine a framework for strengthening policy coordination with the central bank in beating deflation. The yen plumbed a 2-1/2 year low against the dollar, hit 89.67 yens on Monday.
New stimuli measure from Japanese Government
The Japanese government approved emergency stimulus spending of JPY10.3 trillion last Friday, part of an aggressive push by Prime Minister Shinzo Abe to kick-start growth in a long-moribund economy. Under the plan, the Japanese government will spend USD116 billion on public works and disaster mitigation projects, subsidies for companies that invest in new technology and financial aid to small businesses.
Japan's current account deficit
Japan's current account swung to a much bigger than expected deficit in November after the nation's trade gap hit a 10-month high.
China’s latest economic figures
China's annual consumer inflation rate accelerated to a seven-month high of 2.5 percent in December on rising food prices, ahead of expectations and narrowing the scope for the central bank to boost the economy by easing monetary policy. At the same time, China's export growth rebounded surprisingly sharply to a seven-month high in December, a strong finish to the year after seven straight quarters of slowdown.
Europe’s austerity measures
Europe will need more spending cuts to emerge from its debt crisis despite an admission by the International Monetary Fund that cost cutting can choke economies, the EU's top economic official Olli Rehn said.
ECB’s interest rate meeting and Euro
The euro rose as high as $1.3365 last week, the market has reacted positively to the absence of any talk of a potential interest rate cut or injection of additional liquidity from European Central Bank chief Mario Draghi.
Bailout deal of Cyprus
German Chancellor Angela Merkel said she expected talks on a bailout deal for Cyprus to take time, while a senior member of her coalition said parliament was not yet ready to approve any financial aid.
German factory orders slowdown
German factory orders fell more than economists expected in November amid weak demand from outside the euro area. Exports plunged 3.4 percent in November, marking the steepest decline in more than a year.
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