ETX Capital Daily Market Bite, 15th January, 2013: Markets On The Soft Side; German GDP Weighs
January 15, 2013 10:54 am
January 15th, 2012, Daily Market Bite from Ishaq Siddiqi Market Strategist.
European equities are trading mixed to lower this morning despite more good news out of Japan where the outgoing Bank of Japan Governor Shirakawa promised more ‘powerful’ easing in the months ahead to boost the economy and Fed Chief Bernanke downplaying fears during a speech yesterday evening that central bank’s bond purchases could stir inflation in the future. On a negative note putting some modest pressure on stocks, US Treasury secretary Geithner mentioned yesterday that the US could potentially hit the debt ceiling already between mid to the end of February. While there is no major corporate data out today, with the earnings season expected not to get into full swing until tomorrow when big names like Goldman Sachs and JPMorgan are due to report results focus will be mainly on economic figures today. Germany will take centre stage early on reporting their full year GDP figures for 2012, expected to show a sharp decline compared to the previous year. However in contrast to many major European economies Germany is still growing and outperforming mainly due to continuing strong export growth outside the EU to major economies like China and the US, even as the European financial crisis still hasn’t completely been solved and austerity measures being implemented across the Euro-zone are taking increasingly a heavy toll. Overall markets and market sentiment are remaining relatively firm with intra-day weakness often being seen as a welcome buying opportunity, however it needs to be seen if this can be maintained especially with the US debt ceiling ‘battle’ starting to heat up. Also it remains doubtful if investors are willing to show as much patience as during the run up to the fiscal cliff in December as renewed uncertainty deriving from the political stalemate in Washington is increasingly causing harm to the already still fragile economic recovery.
January 15th, 2012, Daily Market Bite from Ishaq Siddiqi Market Strategist.
European equities are trading mixed to lower this morning despite more good news out of Japan where the outgoing Bank of Japan Governor Shirakawa promised more ‘powerful’ easing in the months ahead to boost the economy and Fed Chief Bernanke downplaying fears during a speech yesterday evening that central bank’s bond purchases could stir inflation in the future. On a negative note putting some modest pressure on stocks, US Treasury secretary Geithner mentioned yesterday that the US could potentially hit the debt ceiling already between mid to the end of February. While there is no major corporate data out today, with the earnings season expected not to get into full swing until tomorrow when big names like Goldman Sachs and JPMorgan are due to report results focus will be mainly on economic figures today. Germany will take centre stage early on reporting their full year GDP figures for 2012, expected to show a sharp decline compared to the previous year. However in contrast to many major European economies Germany is still growing and outperforming mainly due to continuing strong export growth outside the EU to major economies like China and the US, even as the European financial crisis still hasn’t completely been solved and austerity measures being implemented across the Euro-zone are taking increasingly a heavy toll. Overall markets and market sentiment are remaining relatively firm with intra-day weakness often being seen as a welcome buying opportunity, however it needs to be seen if this can be maintained especially with the US debt ceiling ‘battle’ starting to heat up. Also it remains doubtful if investors are willing to show as much patience as during the run up to the fiscal cliff in December as renewed uncertainty deriving from the political stalemate in Washington is increasingly causing harm to the already still fragile economic recovery.
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