The week began with markets closed for the Easter holiday in Europe and in Hong Kong. Asian indices were mostly in the red on Monday. In contrast, the major exchanges in the United States started positive for investors.
The most important financial news of the week was the announcement by the United States Federal Reserve Bank Chairman Janet Yellen, that there was no urgency to increase interest rates at this time. There was also further indication that instead of four rate rises there would be two or fewer. Reasons given were market volatility, low inflation and stagnating global growth along with depressed energy prices.
Crude oil prices in the United States and internationally is now back below $40.00 USD (United States Dollar).
The comments by the Yellen helped move United States indexes to their highest closing levels this year.
It also lead to the dollar hitting a six year low against the euro. Asian currencies also moved up in relation to the dollar. Australia and New Zealand are hitting near nine month highs with the Malaysian ringgit at a seven month high.
Kuala Lumpur, Capital of Malaysia
In other news in the United States become the first two major populated states that intend to raise their minimum wage to $15.00 USD.
The United States government prepares to allow Iran greater access to American dollars as most international trade in the energy sector is conducted using USD. Iran is complaining that the overall benefits from the nuclear agreement have so far been muted because of continuing financial sanctions.
The big corporate news was the announcement that the Japanese NTT Data Corporation which is actually a subsidiary of Nippon Telegraph & Telephone, is going to buy Dell’s IT services unit for $3.05 billion USD. It is one of the largest overseas investment by a firm from Japan in many years.
Japan itself, is not experiencing the global rebound in stocks for part of the week because the country announced that industrial output dropped by 6.2% last month. It is the result of declining demand at both the domestic and international level. The dip is the largest, since March of 2011.
Industrial profits in China returned to growth in the first two months of 2016. This occurred despite declining business conditions and a slowing general economy. Profits from the two months rose 4.8% the equivalent of $119.8 billion USD after seven consecutive months of decline.
A power plant in Tianjin, China
The factory sector in China expanded unexpectedly in March of this year.
The Chinese government is also going to permit the largest pension fund in the country, that now controls near 90% of all social security deposits, to start investing in domestic A shares this year. This will allow over $92 billion USD to be moved into the equity markets.
The Asian Development Bank considers that the huge industrial overcapacity of China will be a drag on GDP (Gross Domestic Product) growth, for the second largest economy in the world. The institution is projecting growth at just 6.5% this year and 6.3% in 2017. The government on the other hand, is predicting rates of growth from 6.5 to 7% in 2016 and 6.5% for the next few years.
India is one of the first countries hoping to be issued a loan from the newly created China led Asian Infrastructure Investment Bank. The Indian government wants to borrow the equivalent of $500 million USD for solar projects.
Also in Asia, Myanmar opened the new Yangon Stock Exchange. For the first time investors were able to buy shares of the country’s first listed stock (First Myanmar Investment)
King Salman of Saudi Arabia
The total amount of foreign assets held by the Central Bank of Saudi Arabia dropped in February by 17.3% from a year ago. At $584 billion USD they are at the lowest levels since May 2012. The financial institution serves as the nations sovereign wealth fund. The spend down is the result of the large state budget deficits being run by the government, as a result of the low crude prices.
Investment partners in the Israeli offshore Leviathan natural gas fields, are asking the government to resolve any remaining regulatory issues. This happened after the highest court there, struck down an business understanding on the development of the project.
In Europe, the movement for the United Kingdom to leave the European Union (Brexit) is picking up steam, despite the opposition of the ruling Conservative government. The effort now has 250 major business leaders, who support the British withdrawal ahead of the referendum, due to be held in June.
Meanwhile, the Bank of England although not taking an official position on the issue, is warning that the uncertainty surrounding the referendum may well increase borrowing costs, tighten rules for mortgages and weaken the currency even further.
Seat of the European Central Bank in Frankfurt, Germany
Consumer prices in Europe remain negative this month. Annual inflation for the Euro-zone is at 0.1% after a rate of 0.2% last month. This as largely the result of declining prices in the energy sector. The ECB (European Central Bank) is moving forward on more stimulus measures.
Prices for factory goods in the Euro-zone, have now dropped the most since March of 2009.
The European Union (EU) begins implementation of the highly controversial asylum agreement with Turkey now that April has arrived. Under the accord the EU will take one screened refugee from Turkey for every Syrian migrant returned. In addition, Turkey will receive the equivalent of $7 billion USD to help with the costs of managing the 2.7 million Syrians now residing in that country.
The government of Argentina has finally decided to end the 14 year old stalemate with foreign creditors. The affirmative vote forms the backbone of the newly elected President Mauricio Macri’s plan for restoring the domestic economy. The previous government was plagued by low investment, high inflation and dangerously low central bank reserves. The issuance of new bonds will be the first since 2001.
After much speculation, the largest political party in Brazil broke with the struggling ruling coalition of President Dilma Rousseff. The move sharply increases the likelihood that she will be impeached due to an ever widening corruption scandal, that the President seems unable to get ahead of. She also is being blamed for the worst domestic recession in decades.
The Investment Newsletter had 0 target fills to report this week, and 0 stocks targets came early.
It is recognized that the sale price upon reading the post, may be somewhat different from when the recommendation to sell was actually made. It is up to the investor to determine the ideal time, to close the position.
Stock Fills For The Previous Weeks
Mar 25, 2016 ——– 2 Target Fills
Mar 18, 2016 ———0 Target Fills & 2 Early Targets
Mar 11, 2016 ——– 2 Target Fills & 3 Early Targets
Mar 04, 2016 ———1 Target Fill & 2 Early Targets
Feb 26, 2016———- 2 Target Fills
Feb 19, 2016———- 0 Target Fills & 2 Early Targets
Feb 12, 2016 ———05 Target Fills
Feb 05, 2016 ———05 Target Fills & 4 Early Targets
Jan 29, 2016 ———01 Target Fills & 2 Early Targets
Jan 22, 2016——— 08 Target Fills
Jan 15, 2016 ———09 Target Fills
Jan 07, 2016 ——– 10 Target Fills
Dec 31, 2015 ——–1 Target Fill
Dec 24, 2015 ——–0 Target Fills
Dec 18, 2015 ——–4 Target Fills
Dec 11, 2015 ——–2 Target Fills
Dec 04, 2015 ——–4 Target Fills
Nov 27, 2015 ——- 1 Target Fill
Nov 20, 2015 ——- 6 Target Fills
Nov 13, 2015 ——–6 Target Fills
Nov 06, 2015———5 Target Fills
Oct 30, 2015——— 2 Target Fills
Oct 23, 2015 ——– 2 Target Fills
Oct 16, 2015 ——– 2 Target Fills
Oct 09, 2015 ——- 1 Target Fill
Oct 02, 2015 ——–5 Target Fills
Sept 25, 2015 ——-1 Target Fill
Sept 18, 2015 —— 2 Target Fills
Sept 11, 2015 —— 1 Target Fill
Sept 04, 2015—— 2 Target Fills
August 28, 2015 6 Target Fills
August 21, 2015 – 2 Target Fills
August 14, 2015 –-1 Target Fill
August 07,2015 —2 Target Fills
July 31, 2015 ——1 Target Fill
July 24, 2015 ——1 Target Fill
July 17, 2015——-3 Target Fills
July 10, 2015—— 1 Target Fill
July 03, 2015—— 0 Target Fills
June 26, 2015—– 3 Target Fills
June 19, 2015 —- 2 Target Fills
June 12, 2015—–2 Target Fills
June 05, 2015—–4 Target Fills
May 29, 2015 —- 5 Target Fills
May 22, 2015—– 2 Target Fills
May 15, 2015 —–2 Target Fills
May 08, 2015 —–1 Target Fill
May 01, 2015 —- 3 Target Fills
April 24, 2015—- 2 Target Fills
April 17, 2015 —-5 Target Fills
April 10, 2015 —-3 Target Fills
@ 2014 The Day Trading Academy. All rights reserved. This work is based on SEC filings, interviews, corporate press releases, and extensive research done across investment articles, current events, and investment expertise. It may contain errors, and you shouldn’t make any financial decision based solely on what you read here. It’s your money and your responsibility. As with any investment, there is no guarantee against potential loss. Members should be aware that investment markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not assure future results. This publication’s sole intended purpose is to provide investment-related information as well as education and opinions to subscribers and the recommendations and analysis presented to members is for the exclusive use of members.