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Tradeline Financials - Global Economic News, Week 4 - 2015
Markets globally are set for a positive day as economic news from Asia, pending QE information from the ECB and the State of the Nation address in the US spark positivity.
Chinese indexes are close to record gains this week after the government announced its 7.4% GDP expansion for 2014. Even though this came in just under target, the expansion in the economy was seen as a direct response to the stimulus implemented by the Central Bank.
With both the World Bank and the IMF downgrading their forecasts for 2015 and 2016 to be more in the region of 6% the world's second largest economy is looking to establish its banking policies early and deal with the minimal inflation seen over the past year.
Japanese policy makers made no changes after their 2 day stint. Analysts had not expected any ground breaking moves. After announcing the largest budget for 2015 on record, The Bank of Japan is now looking to see whether the changes made late last year will start to show fruition early in 2015.
Europe should open higher today on anticipation of QE measures being outlined tomorrow. The European Central Bank will be taking their monthly meeting and it is expected that some details should be given by the end of Thursday. All eyes will be on Europe as expectations that QE in the region of €400 - €700bn will be confirmed, depending on the type of bonds secured. Many other large economies are looking to the ECB to fill the gap left by the US when they finished QE back in October.
Mario Draghi has been working towards this move for some time and many will see the probable announcement tomorrow as a major victory for the head of the Central Bank, especially considering the staunch opposition from within the Bundesbank.
President Obama made his State of the Nation address last night and for the first time as President was able to say that the US economy was strong. With improvements in employment and the deficit along with the recent cheap oil the US economy has continued to show strength and is the poster child for economic recovery. Even against a house with a Republican majority the president still championed his causes and warned that should bills be put through to undo his policies, he wouldn’t hesitate to veto them.
The US markets will quite likely see gains today as the build up to the ECB meeting tomorrow see's investors expect QE news.
Major Global Indices as of 21st January 2015:
Dow Jones - 17,515.23 (+0.02%)
FTSE 100 - 6,620.10 (+0.52%)
SSE Comp - 3,295.58 (+3.85%)
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DISCLAIMER The views, opinions, findings, and conclusions or recommendations expressed on this service are those of the author(s) and do not necessarily reflect the views of the Tradeline Financials. All market data within this release is for your general information and enjoys indicative status only. Tradeline Financials does not accept any responsibility for its accuracy or for any use to which it may be put. All share prices and market indexes delayed at least 15 minutes. 52 week high and low values are calculated from close price data.
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