Investment Markets Overview — W/E 5th May 2017

“793”…… Global merger and acquisition (M&A) deals have been completed this year as of the end of April 2017, according to “dialogic” who collates the data involving publicly traded corporations. This is 20% lower than the comparable period of 2016 and is the lowest number since 1998, which given that stock and bond markets are not far off their all-time highs is a surprise. The hesitancy is muted to be due to Brexit and the uncertainty over US tax-reform, which may have some merit, although a “look under the bonnet” reveals that the “value of deals,” is up by 13.9% YTD, at $US480BN, much due to acquirers’ having to pay a higher multiple of about 6% more than at this time last year. Talking of deals, the “art” of which played so favourably for “the Donald,” when it was candidate Trump, was left wanting during the negotiations and settlement with the US house and Senate over the $US1.1 TR spending bill. Whilst it keeps government open until the end of September,  the Democrats achieved most of their priorities whilst rejecting most of the President’s, including money to begin building a wall along the U.S.-Mexican border and $18 billion in cuts to domestic agencies. Time will tell whether the “Washington swamp,” really is too set in its corrupt ways or if the deal-maker is biding his time within a wider game-plan. Either way, whilst it will unsettle the markets it will be the markets that provide the catalyst to “clear the swamp.”

European stocks led the parade this week, belying any French election concerns, whilst the major US indices were dragged higher by an ever narrower handful of stocks. As shown below, it’s been another brutal week for commodities and in particularly for the “economy bellwethers’,” Copper & Silver.” For more on the week’s main data, supported by interesting charts and comment, please read on and for those who missed our last minute French election socionomic comment, it’s HERE:

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Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

 So, the Federal Reserve officials left its “target” interest rate on hold this week, within the bounds of 0.75% – 1%, whilst providing little direction  ……

Charts:
1.  Indices Weekly
2. US SPX Index V US Citi Surprise Index
3. UK London Rental Price V EU Rentals
4. OZ Base Rate V OZ 10-year yield
5. Commodities Weekly

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

                         “Interest rates Fall and then they Rise” 

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