Spreadex Market Analysis: Global Headline Indices Trading Lower, Again

AM Analysis – “Surge in Asian markets yesterday on speculation on tapering” – Alex Conroy
Following a surge in Asian markets yesterday on speculation on tapering, speculators last night appeared to look to take a quick profit causing Asian bourses in general to decline. The Nikkei’s constituent’s average share price dropped on average 2.2% whilst the MSCI Asia-Pacific shares outside Japan declined 0.4%. Fear of losing profits seemed to be rife ahead of US jobless data on Friday which is likely to further heighten tapering speculation.
 
European bourses could see volatility today ahead of ECB meeting tomorrow, where inflationary forecasts and the fear of deflation will be addressed. October brought a milestone for European inflation which sank below Japan’s for the first time. Japan has been fighting deflation for the last 15 years and under Prime Minister Abe hopes that they may finally escape it have been raised. Europe on the other hand has been going in the opposite direction with the average inflation rate in the Eurozone falling to 0.7% compared to Japan’s 1.1%.
 
PM Analysis – “Global headline indices are trading lower yet again” – Max Cohen        
Global headline indices are trading lower yet again, breaking the trend of investors buying into the dips. The FTSE 100 is now at a 7 week low, disappointing investors who had been banking on a rise in the index this month. The FTSE 100 has risen in all but two of the last 20 Decembers, but with the index already trading up 10.6 percent in 2013, traders are in a more cautious mood. Additionally, European stocks have fallen for a fourth consecutive session making this the longest run of losses since June. It would seem that we could be entering a period of consolidation for equities.
 
In a boost for market participants U.S. companies added 215 thousand jobs last month, the most since January, according to today’s 13:15 ADP Non-Farm Employment Change. The Federal Open Market Committee meets December 17th-18th to discuss policy after minutes of their last meeting in October showed officials may reduce their $85 billion of monthly bond buying should the U.S. economy improve as anticipated. The Fed is scheduled to release its Beige Book report on economic conditions in its 12 districts today.
 
[The original articles by Spreadex can be found here.]
 
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