Round up 24th-28th June
June 29, 2013 Leave a comment
Weekly Round Up
It’s been an exciting week, the markets have had a rollercoaster ride trying to recoup the losses this week but failing (it was a big ask in all honesty). The mere mention of reducing the amount of quantitative easing by Ben Bernanke due to signs the American economy may be returning to health caused ripples all through the markets. To be fair all Ben Bernanke did was mention that he may scale it back, (thanks Benny keep it to yourself next time).
I think it’s fair to say that during this cheap money free for all governments haven’t really taken action or took advantage bringing growth and rebalancing the economy.
Fair well to the King
After a sterling performance we will be saying goodbye to Sir Mervyn King, in his last statement he dismissed the suggestion that interest rates may rise because it would hinder the already fragile economic recovery. He also said that he voted for more QE in the UK because although a recovery is on the cards it will not be strong enough to lower unemployment on its own.
Emerging Market shows cracks
People who have investing the risky Emerging Markets have had some stellar returns, although previous weeks have seen a huge chunk wiped from their savings. This is partly due to the slowdown of Chinas growth rate, it is scaring investors many emerging markets export resources to China to fuel its growing population.
GOLD
This week gold showed that it was not immune, falling below $1,200/oz to its lowest point in almost 3 years having been as high as $1,895 in 2011. It seems like a lifetime away that the Bulls were out saying it would reach $2,000, it is its biggest drop for 30 years, Gold miners suffered with Fresnilo and African Barrick Gold near the biggest losers of the day.
Mark Bannister
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