< Back to Trader Blog Articles

Trader Talk: An Analysis of the Markets this Morning

  • Investment Manager
  • Blog post submitted on 25th February 2014

Good Morning

Markets opened marginally lower this morning, on the back of disappointing economic data coming out of China, re-igniting concerns that a weaker property market in this region could result in a marked decline in demand for global commodities, namely copper. Gold and silver also declined.

Whilst economic growth in China has disappointed, the same cannot be said for the Eurozone and the US, with the Eurozone in particular faring better than most would have expected. Recent data has in fact indicated that Germany’s economy expanded at a faster pace in the final quarter of 2013 than the previous three quarters.

Meanwhile, the Turkish Lira weakened for a second day as the main opposition party called on Prime Minister Erdogan to step down on accusations of wiretapped conversations and wrongdoings.

Elsewhere in peripheral Europe, Ukraine investors welcomed parliament’s ousting of President Yanukovych, sparking a 2-day bond rally. However, interim leaders are still pondering moves on raising as much as $35bn worth of financial aid. The International Monetary Fund, US and EU have so far pledged to help Ukraine, adding further impetus in the recent bond rally. Despite this, in the short term, the greatest challenge will be to prevent capital outflows and curb the loss of foreign reserves which could continue to hamper the Ukrainian economy, which is currently recovering from its third recession since 2008.

Protests against lack of basic goods, rising inflation (the world’s largest) coupled with increasing crime rates in Venezuela seem to be threatening Maduro’s grip at the helm, with borrowing costs rising sharply over recent weeks. Despite boasting the world’s largest oil reserves, Venezuela’s underlying state of the economy remains in a perilous situation, as Maduro continues to implement policies adopted by this predecessor Hugo Chavez and the party’s brand of socialism. This has led the country to be highly dependent on oil reserves.

The issue here is that problem countries like Ukraine have managed to get the US and EU on their side. Venezuela is just short of allies having the financial prowess, making the struggle for liquidity a tad harder.

Have a nice day!


The Calamatta Cuschieri Traders Blog is available daily on CC WebTrader. Other market coverage including coverage of the International Bond Markets is also available.

The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Calamatta Cuschieri & Co. Ltd. (CC) has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website.
This website is owned and operated by Calamatta Cuschieri & Co. Ltd (Co. Reg. No. C13729) of 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103, Malta. CC is licensed to conduct Investment Services in Malta by the Malta Financial Services Authority.