Connect with us

Archive

International Market Witnessed High Levels Of Volatility In Response To Economic Indicators

Published

on

“The international market For the period October 1, 2012 to September 30, 2013 witnessed high levels of volatility in response to economic indicators which pointed to a rocky global recovery. In the US, there were promising signs in unemployment which fell to 7.2% in September 2013 from 7.8% in the prior year.

This, together with the recovery in the housing market, prompted the Federal Reserve to consider tapering its bond buy-back programme – Quantitative Easing (QE 3) in May. QE was one of the key accommodative policy measures implemented to return the US economy to growth by increasing liquidity and keeping interest rates low.

Following this pronouncement, however, stocks declined, bond yields rose and higher rates threatened the recovery in the housing market. This forced the Federal Reserve to delay its decision at the September meeting until the economy and key sectors showed signs of sustainability. With economists forecasting that the two-week US government shutdown will have a negative impact on growth in the final quarter of 2013, a QE taper could be delayed even further. Soft conditions in the US have prompted the Bank of Canada to revise its growth forecast for that economy to 1.6% for 2013, down from 1.8% in July as the expected pick-up in Canadian exports is yet to materialize.

The Eurozone has emerged from an 18-month recession helped by increased output from the larger economies such as Germany and France. However, most economists believe the recovery is too sluggish to overcome the deep problems ailing the region, including mass unemployment, high debt levels and weak financial institutions, any time soon. The European Commission is forecasting that the Eurozone will grow by 1.1% in 2014.

The familiar theme in the advanced economies is that growth is positive but weak and could remain fragile in the near future. This will continue to filter through to the developing countries which are largely export dependent. The International Monetary Fund (IMF) forecasts, that the global economy will expand by 2.9% in 2013 and 3.6% in 2014. This projection takes into account the downside risk relating to the expected slowdown in the developing economies.”

Hon. Michael Lee-Chin OJ
Chairman
National Commercial Bank Jamaica Limited

Continue Reading
Click to comment
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Archive

John Mahfood “I Listed on the JSE to Raise Capital for My Business”

Published

on

Continue Reading

Archive

JSE Online Trading Platform

Published

on

Continue Reading

Archive

Grace Stockholders To Vote On 3-for-1 Stock Split Today

Published

on

Shareholders of GraceKennedy Limited will this morning meet to consider and, if thought fit, approve a recommendation for a three-for-one stock split.

If approved, shareholders will receive three stocks for each one that is currently held.

According to group CEO Don Wehby, the stock units with a market price of J$115.00 per stock unit prior to the split will now increase threefold with an initial price of J$38.33 per stock unit

He says the stock split would allow GK’s stock to be made available to more investors while further enhancing the market for the shares.

Ahead of this morning’s Extraordinary General Meeting, GK last week issued 59,360 additional GK shares.

Continue Reading

Archive

UK Loses S&P Triple A Rating

Published

on

The UK has lost its top AAA credit rating from ratings agency S&P following the country’s vote to leave the EU.

S&P says the referendum result could lead to “a deterioration of the UK’s economic performance, including its large financial services sector”.

Earlier the pound plunged to a 31-year low against the dollar, and UK markets closed lower for a second day. On Friday,

Moody’s cut the UK’s credit rating outlook to negative.

Continue Reading

Archive

Caribbean Hotels Named In Jetsetters’ 2016 Best Of The Best

Published

on

Three Caribbean hotels have been named in US-based travel and lifestyle magazine Jetsetter’s 2016 Best of the Best awards.

The list which was published recently, highlighted the world’s 20 best hotels in categories ranging from Best Over-The-Top Luxury to Best Safari Lodge.

Included in the list were Antigua and Barbuda’s Barbuda Belle Luxury Beach Hotel, Anguilla’s Zemi Beach House Resort & Spa, and St Lucia’s BodyHoliday.

Continue Reading

Trending

0
Would love your thoughts, please comment.x
()
x