46 Jobs | 974661 Resumes

Financial focus

Today’s Markets: European shares to gain
Asian Markets: Japanese share near five-year high
Markets last week: Tech shares help S&P’s bad week
USA: Data shift to lift US economy by 3%
UK: Osborne to boost business-lending scheme
Italy: New President hopes to end political stalemate
China: Zhou says slower growth is “normal”
Canada: Carney predicts Canada will follow US growth momentum
Currencies: Yen weakens toward 100 per dollar on G20 ‘approval’
Energy: WTI crude advances for third day
Commodities: Commodities fall, with gold dropping 7%
Property: EU to outlaw “liar loans”

Today’s Markets: European shares to gain
European shares were expected to rise for a second straight session
on Monday, mirroring gains on Wall Street and in Asia, with recent
encouraging results from some major firms raising optimism for the
earnings season.

Asian Markets: Japanese share near five-year high
Bulls drove Japanese shares to nearly five-year highs as yen bears
clawed at the 100 yen/dollar door overnight, encouraged by the Group
of 20 gatherings in Washington all but endorsing the BoJ’s bold
reflationary policies. Asian shares inched higher while oil and gold
rebounded after last week’s a sharp sell-off last week but investors
remained wary of volatility given uncertainty global growth prospects.
Markets last week: Tech shares help S&P’s bad week

US stocks rose on Friday as earnings from tech companies lifted
shares, but the gains weren’t enough to stop the S&P 500 from
suffering its worst week since November. High volatility marked the
week, with the S&P 500 falling 2.3% on Monday, which fuelled talk
that the market’s long-awaited pullback had arrived.

USA: Data shift to lift US economy by 3%
The US economy will officially become 3% bigger in July as part of a
shake-up that will for the first time see government statistics take into
account 21st century components such as film royalties and spending
on research and development. Billions of dollars of intangible assets
will enter the gross domestic product of the world’s largest economy in
a revision aimed at capturing the changing nature of US output.

UK: Osborne to boost business-lending scheme
George Osborne and the Bank of England will announce an extension
of its Funding for Lending Scheme within the next two weeks in a bid
to get finance flowing to small and medium-sized companies. Treasury
officials hope the rapid introduction of the second stage will boost
growth and might also give the IMF a reason not to criticise the
chancellor’s deficit reduction plans when it arrives for its annual
mission to the UK in May.

Italy: New President hopes to end political stalemate
The re-election of Italy’s president Giorgio Napolitano has raised hopes of an end to two months of political stalemate, with a move to form a government foreseen within days. Napolitano will likely spell out his strategy today, but made it
clear before being re-elected that he favoured the formation of a government to a potentially destabilising new vote.

China: Zhou says slower growth is “normal”
China’s slower expansion in the first quarter is “normal” as the world’s second-largest economy sacrifices growth to make
structural reforms, People’s Bank of China Governor Zhou Xiaochuan said. While a “mild” global slowdown is affecting
China, the 7.7% gain was “overall normal” compared with the government’s 2013 target of 7.5%, Zhou said.
Canada: Carney predicts Canada will follow US growth momentum
Bank of Canada’s Mark Carney said the US economy has undergone “a lot of repair” and is picking up momentum, a
development that should bolster demand for the country’s exports and fuel business investment. The “US private sector
has picked up significantly over the course of the last couple of years,” Carney said. In Canada, “we think it’ll take a
couple of more quarters before the domestic momentum picks up and then we’ll see business investment move,” he said.

Currencies: Yen weakens toward 100 per dollar on G20 ‘approval’
The yen weakened, nearing the 100 per dollar level not seen since 2009, after the BoJ’s’s monetary stimulus policies
were unopposed by the Group of 20. The won fell on concern South Korea will act to protect its exports against a weak
yen. The euro rose versus the greenback before Giorgio Napolitano is sworn in to a second term as Italian president.

Energy: WTI crude advances for third day
West Texas Intermediate crude advanced for a third day as investors speculated that declines over the past three weeks
was excessive. Hedge funds cut bullish bets on WTI by the most in almost two months.

Commodities: Commodities fall, with gold dropping 7%
China’s weakening economic expansion and slowing earnings growth in the US sent copper into a bear market and gold
to the biggest weekly drop in a year and a half last week, while global stocks fell the most in 10 months. The S&P GSCI
Index fell to the lowest level since July during last week, led by silver, gold, lead and copper.
Property: EU to outlaw “liar loans”

EU negotiators are expected to finalise the bloc’s first common rules on mortgage lending today, in an attempt to avoid a
repeat of property bubbles that helped fuel the Eurozone’s debt crisis. The legislation will force lenders to check the
creditworthiness of potential customers and their ability to repay, effectively banning self-certified or so-called liar loans.

Leave a comment:

©2021 ExecutiveSurf | +44 2077291837 | Registered in England no. 1111 7389 - VAT. GB 291 0514 23