Financial updates ending Mar 25th, 1525pm

Financial markets are still very volatile.

As you may already know ( a recap/summary),

The geopolitical situation in Middle East North Africa (MENA) is not getting much better. With France, USA, UK and allies, no fly zone was declared protecting  the citizens of Libya.

As a result, mining commodities prices though volatile are trending much higher. Gold spot prices had broken lifetime high, Silver spot prices had broken year high, Crude prices broke through  US$ 106 per barrel.

The (ongoing) earthquake and tsunami on March 11^th resulted in a nuclear crisis amongst Japan’s nuclear plants. Though the situation had improved, the threat of radiation had not receded. As a result, global financial equity markets nose dive last week. Though volatile, the trend had much improved from bargain hunters!

Japanese Yen, USDJPY strengthen to 76.5 thereabouts before the coordinated effort of G7 weakened USDJPY to current levels of USD 80.90 thereabouts. USD is generally still very weak – my speculation is that the USD might improve late 1H into early 2H, however, pending any announcement of QE3? US interest rates expectation in Q4 2011 or Q1 2012?

PIIGS, EU sovereign debts as most of you already know had resurfaced. Focus is on Ireland and Portugal with the latter experiencing credit rating downgrades from credit watch agencies. Speculators, however brushed off the event and the Euro rose against most currencies.

Is it time to move into higher risk investments

Week ending March 6th 2011:

It’s been very difficult to move in lately. In other words, it’s very volatile.

This is just an interim effect of QE2! There’s more! (email to discuss if you need a detailed explanation)

Inflation is felt in MENA, creeping into Asia and to the rest of the Global economy. Surprisingly, NOT in USA!

The Middle East North Africa (MENA) tension is weighing on global sentiment.

For example, markets were down for most of this quarter, then Friday was up (cheers!). The global markets went down again on Monday!. If you recall just yesterday, Asian markets rallied strongly when Saudi Arabia tried to cool the market by ‘replacing’ oil outputs from any loss in Libya. Last night, tensions grew in Saudi Arabia, Iran and rest of MENA. As a result, global markets are heading South again.

However, Commodities are on the rise!

Mining.

Bottom line is Crude Oil broke thru US$ 100 per barrel again.

Silver reached 2011 high of US$ 34.57 and broke thru.

Gold had broke the previous LIFE time high and rallied  thru US$ 1430.97 and reached US$ 1434 this morning.

Agriculture.

Agriculture Commodities are smashing thru the roof with inflation being exported from US!

Forex or Currencies are different somewhat animal or creature. Commodity Currencies like AUD and NZD plunge as a result of MENA tension and rising Oil prices. The latter NZD is somewhat more bearish on the recent earthquake in Christchurch and PM talks of welcoming lower interest rates.

I’l sign off here and will update you all on a regular basis or adhoc! Have a great time, enjoy yourself. If you have any queries on financial risk management, investments, housing loans, writing a will, just drop me a line! God Bless!