Feb 10, 2017 | Investment Advice

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.

 IndexChange%
U.S. S&P 5002308+27+1.2%
London’s FTSE7230+89+1.2%
Japan’s Nikkei18908-7
Hang Seng23525+340+1.5%
China’s Shanghai3080-79-2.5%

 

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