Stockport based Prest Financial Services have published their latest view on the financial market.
Share prices around the world have risen following the agreement over the “fiscal cliff ” in the USA. However, the debt problem has been merely deferred and further confrontations between the different political factions seem inevitable.This political stalemate looks likely to be prolonged further.
Growth in the Chinese economy has gone down to the target set by the government as part of it’s aim to reduce overheating in their economy. They want to slow down their infrastructure development and lending to the property sector whilst increasing the focus on consumer demand and on privatising more of their economy.
Interest rates for peripheral Eurozone debt have reduced, reflecting greater confidence as the European Central bank now guarantees much of it.
UK and European banks are making good progress towards compliance with the stricter capital requirement rules. During this process, the banks cannot lend as much as before the credit crunch and it is unlikely that they will lend with such reckless abandon in the foreseeable future.
The FTSE100 climbed from 5,914 on 7 December to 6,154 on 18 January.
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