Equities Increase 8% since August

European markets have rallied since a bottom in mid-August. Investors who have added to the Euro Equity Fund at the time are today sitting on a pretty 8% gain. European Market Indices are now gliding back to the top. However, I still believe that pockets of opportunities exist. One such opportunity may be German stocks. German stocks have failed to recover as strongly as their European counterparts upon fears that the Ukrainian crisis may have a significant impact on German output. Now that tension in Ukraine appears to be subsiding shares like BMW, Deutsche Post, Volkswagen, Lufthansa and Adidas are starting to appear attractive. Full research reports are available through our Webtrader service.

Unfortunately several investors are still uncomfortable with investing in the equity market. Our opinion and current stance is that now is the right time to shift a part of ones investments into the equity markets at we expect equities to outperform other asset classes in 2015.

Elsewhere;

US

US stock market indices rebounded after three days of negative price movements as new-home sales data surprised upwards. The data showed that in August new-home sales in the US increased to the highest level in six years, interpreted by many as a clear sign that the housing recovery is making progress. Housing indicators are often cited as the best indicators of the health of the economy as consumers typically only invest in new houses if they are confident of their income streams.

The benchmark S&P 500 index advanced 0.78% while the technology biased NASDAQ increased by 1.03%. Technology stocks had retreated in the previous three days as investors decreased risk from their portfolios.

Asia

China has uncovered $10 billion in fraudulent trade. Companies used illegal documents in order to export or import goods and providing an illegal channel for criminals to move funds. As a result investment and commodity import may slow as banks will likely increase checks on documentation.

The Hong Kong’s Hang Seng Index declined 0.3 percent, the Nikkei 225 Stock Average increased 1.3 percent and Australia’s S&P/ASX 200 Index climbed 0.1 percent.

Europe

European stocks advanced marginally on the open as investors awaited a speech by the European Central Bank President Mario Draghi. Draghi speaks at a conference of European central bankers in Lithuania. Draghi’s Speech starts at 10:00 CET.

Deutsche Post AG owner of DHL beat Amazon and Google to be the first mail provider to use drones. Europe’s Largest postal service, is about to begin deliveries of medication and urgent goods to the some islands using unmanned helicopters.

Air France rose 2.2 percent at it withdrew plans to create a Transavia Europe and instead focus on Transavia France, avoiding relocation of jobs from France.

Investors are betting on a rebound in Russian stocks as tensions in Ukraine appear to be easing. NATO, one of the most outspoken critics in Russia, admits that the Russia is pulling back increasing the probability of a resolution to the conflict.

Currency

The US dollar climbed to a four-year high as home sales data signaled that US economic growth is on track. US data on durable goods and initial jobless claims today should cement yesterday’s home sales data.

The Euro slid below $1.28 for the first time in 14 months as markets are becoming more convinced that the European Central Bank will add further monetary stimulus. BNP Paribas are forecasting the Euro at $1.18 next year.