With the end of the second quarter of 2014 looming large, which markets have performed best so far? The S&;P 500 is the standout performer year to date with a strong second quarter (April-June) after a wobble back in February brought on by the Ukraine crisis

The indices are marginally down today after Markit published its review of June European economic activity in the eurozone called the The Markit Purchasing Managers’ Index (PMI) with its lowest rating in six months

Despite all the worries about Iraq and rising oil prices, it was comments from Federal Reserve chair Janet Yellen that soothed any nerves and gave the equity markets a strong boost towards the end of the week.

As expected the Federal Reserve’s FOMC meeting had the desired effect and this time around the markets liked what they heard with the S&P 500 breaching another record high and the FTSE 100 currently up 55 points to 6,883.

It seems to be a case of all systems go for the UK economy right now, with solid economic growth, booming house prices and low inflation.

As well as the ongoing situation in Iraq investors are watching and waiting for news from the US Federal Reserve. The key Federal Reserve FOMC (Federal Open Market Committee) meeting begins on Tuesday with Chair Janet Yellen due to give a press conference on Wednesday.

Brent crude has spurted higher to near $114 a barrel and WTI oil rose over $107, levels today, a nine month high as the problems in Iraq and tight US inventories continue to worry oil traders.

The market is pretty dull right now, though moving largely upwards. Market volatility is low, valuations are high and for the contrarian investors who have been betting on a significant market correction over the last few months, for now their bets aren’t coming good.

Today Spanish 10 year bond yields went below US 10 year Treasury bond yields. In early 2012, Spanish bonds traded with a 6% premium to US bonds (8.5% vs 2.5%), that’s one hell of a reversal!

The US equity indices are at all time highs and investor enthusiasm for stocks is being driven upwards by pretty good American economic data such as Friday’s non-farm payrolls employment report for May.