Weekly Market News Tag Archive

  • This weeks money related news

    2 Min Read

    Late last week we had mirrored news from both sides of the pond which sent the financial markets into overdrive. Against analysts expectations the FED in the US failed to reign in its quantitive easing program which sent the US and UK stock markets soaring, although there has been some profit taking since, as the actual value of US assets are lessened due to the new money entering the market.

    On the flip side the flood of encouraging financial data in the UK has led the Bank of England committee hardening their stance on QE (quantitive easing) which following the governors long-term stance last month has caught analysts on the hop.

    Other global news effecting currency markets:

    • As the Indian Central Bank continues its efforts to curb the outflow of money from their economy they have raised their interest rates from 7.25% to 7.50%, inflation in the country is running at 6.1%, so this should have a result in slowing this rise down.
    • UK borrowing was £0.8bn down on forecast according to the Office of National Statistics and the tax take has been 2.8% higher last month compared to the same month last year, this has led the Bank of England to up its growth forecast from  0.5% to 0.7% for the third quarter.
    • Ireland has officially emerged from recession  in the last quarter with growth of 0.4%. Much of this was put down to the many multi national companies that reside in Ireland due to their competitive tax rates for companies, as domestic consumer spending was only up 0.7%.
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