International News (Issue 455) – June 30th, 2017

International News (Issue 455) – June 30th, 2017

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International News (Issue 45) – June 30th, 2017

A few strong points to make in the international space this week.

Most pertinent is ECB chief Mario Draghi’s comments or hints rather that deflationary forces had been replaced by inflationary ones.

Such hawkish commentary opens the door to possible rate hikes and is certainly relevant given Draghi’s typical dovish bias.

The EUR jumped to a 9-month high on account of this news.

Federal Chief Janet Yellen reiterated the intentions of the FOMC to gradually raise interest rates provided the economy continues to improve.

Data released this week showed the US economy slowed less sharply in Q1 than initially estimated as a result of higher consumer spending and growth in exports.

US bank stocks received strong support following this and following the Feds approvals of the banks’ plans to raise dividend payouts and share buy-backs under its annual stress test program.

Stock-wise, Google’s parent company Alphabet fell ~5% as EU regulators imposed a record $2.7b fine for abusing its market dominance. Google was fined for illegally favouring its own shopping service in search results denying other companies the chance to compete.

Shares of Nike Inc. were higher after the company beat fourth quarter earnings guidance.

Nike reported net income of $1.01b up from $846m in the prior corresponding period.

Thursday Closing Values

Index Change %
U.S. S&P 500  2420  -15  -0.6
London’s FTSE  7350  -89  -1.2
Japan’s Nikkei  20220  +109  +0.5
Hang Seng  25695  +290  +1.1
China’s Shanghai  3188  +41  +1.3

 

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By | 2017-10-16T11:51:17+00:00 June 30th, 2017|International News|0 Comments

About the Author:

As the Chief Investment Officer (CIO) for Prime Financial Group, I work closely with the national advisory team, high net worth individuals, family groups and Prime’s broader accounting network to provide considered and pro-active investment advice.