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International News (Issue 435) – 10 February 2017

In international news this week, much of the headlines focused on the continued fall in Chinese foreign exchange reserves, this month under the crucial US$3trillion level.

The figures seemed to point to escalating capital outflows, and though the market seemed to ignore the figure this week, the market is likely to become less sanguine with ongoing deterioration in the months ahead.

Trump’s comments of a ‘phenomenal’ new tax plan in the works helped bolster global share-markets late in the week, though it remains to be seen the details behind the plan, nor in fact the support for the plan given it is likely to include a controversial 20% border tax on imported goods.

Lastly, in Europe this week we had increased rumblings of discomfort in sovereign debt markets, with Greece once again in the headlines following remarks by the IMF of the need for Germany to ‘forgive’ Greece on parts of its debt.

European sovereign debt markets have been progressively worsening over the past month as investors begin to question the end of the ECB’s material QE/bond-buying program, though it is yet to feed through to equity markets.

Again this is a situation to monitor in the weeks and months ahead.

 

Index Change %
U.S. S&P 500 2308 +27 +1.2%
London’s FTSE 7230 +89 +1.2%
Japan’s Nikkei 18908 -7
Hang Seng 23525 +340 +1.5%
China’s Shanghai 3080 -79 -2.5%

 

Disclaimer:
This information has been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL 239180 (“Prime”). Prime accepts no obligation to correct or update the information or opinions in it. This information does not take into account your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate to your situation. It is recommended that you obtain financial, legal and taxation advice before making any financial investment decision. Prime is bound by the Australian Privacy Principles for the handling of personal information.

 

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