Oct 21, 2016 | Investment Advice

International News (Issue 422) – 21 October 2016

Let’s forget the Presidential debate since its truly depressing.

Some bookmakers are already paying out on Hillary winning, but as I wrote above, the potential for social unrest in response to this likelihood is no good thing.

In the US last weekend the Federal Reserve Chairman Janet Yellen spoke of running the US economy ‘hot’ for a period, indicating a willingness to delay tightening longer than they might otherwise might.

At the face of it these remarks should be constructive for investment markets, but for the fact they simply reflect a view already held in bond and equity markets, and hence not particularly informative.

In the UK, the collapse of the British Pound post the BREXIT decision in June has begun to impact domestic consumer prices. Analysts there are fearful of a consumer recession as the cost of living rises alongside the weaker pound.

The ECB Governor Mario Draghi endeavoured to counter a recent fear by markets that the ECB had little left in the arsenal to stimulate economies by remarking this week that the central bank hadn’t discussed a tapering of their current policies.

There had been some concerns this was the case after the release of remarks post the latest ECB board meeting, so the comments this week are merely aimed to rectify any uncertainty created.

In China this week we had the release of September quarter economic figures which showed the economy growing as expected at +6.7%.

No big deal.

 IndexChange%
U.S. S&P 5002141+8+0.4%
London’s FTSE7027+49+0.7%
Japan’s Nikkei17236+462+2.8%
Hang Seng23374+343+1.5%
China’s Shanghai3084+23+0.8%

 

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