Wider market outlook 6 November 2014

06th November 2014

Quantitative Easing (QE) is the major talking point across the globe, but for different reasons.

In the US the FED terminated its QE program as a result of increase in employment, rise in household spending and greater business investment. However, before anyone gets too carried away with what this means, it should be stated that it is expected that the FED will keep interest rates at a low level for a while yet, as a result of political and economic factors - US mid-term elections, a slowdown in China, poor relations between Russia & Ukraine and QE in Japan.

In Japan it was unexpected that the Central Bank of Japan would expand its QE and with voting split 5-4 it is clear that not everyone was in agreement to the extent of the new measures. The question this raises is how much pressure this will place on the European Central Bank with regard to their QE programme.

There was not much economic data in the UK to shout about, however eyes will be on release of data in the US and outcome of the European Central Bank meeting at the end of this week.

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