Monthly Markets / February 2013

February 17, 2013

In February, political events moved to the fore again.  An indecisive Italian election outcome unnerved European bond and equity markets, while in the US politicians failed to reach a compromise to avert or delay the so-called “sequester”, $85 billion in automatic spending cuts over the next seven months.  US markets, however, shrugged off Washington’s latest deadlock and continued to post gains as Chairman Ben Bernanke reiterated the Federal Reserve’s commitment to quantitative easing, suggesting that investors are currently more concerned with monetary than fiscal policy.  Meanwhile the US economy continues to shows signs of progress with the Institute of Supply Management (ISM) survey for February indicating above average production growth, with improvement coming from both current production and the more forward looking new orders survey.


Monthly Markets / January 2013

January 17, 2013

January was a month in which it seemed each of the major hurdles were dealt with one by one, at least for now.  After the partial resolution of the fiscal cliff early in the New Year, US lawmakers continued the theme of temporary measures by extending the debt ceiling with conditionality to May ahead of further negotiations for a more lasting solution.  US earnings season has nearly concluded, with results broadly in line with historical averages, while further evidence of China’s soft landing emerged with the release of Q4 2012 real GDP growth figures.  Global equity and bond markets responded as expected.  Stock indices across the world generally recorded strong gains, highly rated sovereign yields also edged higher while those in peripheral European nations continued their march downwards.  Despite the positives, markets reminded everyone it is hardly smooth sailing ahead.  European equities gave up some of their gains later in the month as corruption allegations against the Spanish Prime Minister gained traction and support for Silvio Berlusconi in Italian pre-election polls jumped.


Make contact with Frontier. We're waiting to talk to you Contact us

GIRA partners