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Most pertinent is ECB chief Mario Draghi’s comments or hints rather that deflationary forces had been replaced by inflationary ones.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
|U.S. S&P 500||2420||-15||-0.6|
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.
[tagline_box backgroundcolor=”” shadow=”no” shadowopacity=”0.1″ border=”1px” bordercolor=”” highlightposition=”top” content_alignment=”left” link=”https://www.primefinancial.com.au/make-an-appointment/#.V_LhiyF96Uk” linktarget=”_self” modal=”” button_size=”” button_shape=”” button_type=”” buttoncolor=”” button=”MAKE AN APPOINTMENT” title=”Start planning your future with Prime.” description=”Prime: A complete Wealth Management & Accounting Advice Experience” margin_top=”” margin_bottom=”” animation_type=”0″ animation_direction=”down” animation_speed=”0.1″ animation_offset=”” class=”” id=””][/tagline_box]