•  Data out of the US was mild at best this week. Regardless the Dow and S&P 500 posted small losses while the Nasdaq gained. Q1 GDP was revised down to  -2.9%, a wide miss from the expected -2% and the original -1% posted. Mortgage data, durable goods orders and consumer spending all came in this week below their expectations.
•  News out of Asia for this week provided ammunition to both bulls and bears. Japan reported the lowest unemployment rate in 16 years on Friday and Prime Minister Abe revealed reform efforts to try and unlock rigidities in the labor market. However the reforms were not as bold as desired. China’s PMI bounced back above 50 on Monday but reports of commodity backed loans failing in the middle of the week reminded investors of the nation’s flaws.
•  In banking, BNP Paribas will pay a record $8.9 billion fine to the US for violating sanctions placed on foreign countries such as Somalia. New York Attorney General Schneiderman announced a lawsuit again Barclays and the latters “dark pool,” a shadowy market where limited information is provided on deals. The AG alleges that Barclays’ system favored high frequency traders over other orders.
•   Gold continued its gains albeit at a more tempered pace this week. The absence of overtly positive data pushed funds into safe assets, further evident in the fall of US 10 year yields.
•   The Bank of England’s Mark Carney announced new regulations for the financial sector in attempting to quell a boom in the real estate market. Markets are watching the central bank’s actions for a reading on when rates could rise aas well as the setting of any precedents for other central banks currently accommodating their economies.
•   The Dubai Financial Market General Index posted losses of over 6% on Tuesday; the index is down over 20% since May on fears of another bubble in real estate bursting.

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