Reuters - European stocks were set to open higher on Monday after data about China helped allay fears of a hard-landing in the world's second-largest economy, while the euro steadied on hopes that Europe's leaders were making some progress toward tackling the region's debt crisis.
HONG KONG (Reuters) - European stocks were set to open higher on Monday after data about China helped allay fears of a hard-landing in the world's second-largest economy, while the euro steadied on hopes that Europe's leaders were making some progress toward tackling the region's debt crisis.
The German elections came and went, with Merkel initially said to have an absolute majority, but in the end being forced to design a Grand Coalition. Still, the punditry has been tripping over each other desperate to make that result (or any other result) positive for Europe , which despite now paving the way for policy continuity, together with the latest round of less than impressive Eurozone PMIs (following the strongest China HSBC PMI in 6 months) failed to inspire appetite for risk in Europe this morning where stocks have traded mixed.
LONDON/BEIJING — Signs of an economic revival in China have raised hopes that Beijing’s targeted measures to bolster growth are having an impact but a slowdown in the eurozone will increase expectations of policy easing there.
Chinese factory activity expanded at the fastest pace in five months in May but eurozone manufacturing growth slowed more than initially thought, fuelling expectations that the European Central Bank will ease policy this week.
Davos (Switzerland) (AFP) - China's Premier Li Keqiang sought Wednesday to allay fears over the Asian giant's growth outlook, telling business and government elites gathered in Davos that the economy is not heading for a sharp slowdown.
What’s the greatest risk to the global economy in 2015? Europe’s stuttering economy is a big one. Ever-present geopolitical risk is another. But the possibility of a hard landing in China looms largest. Long-running concerns still remain: oversupply in the housing market, the heavy debt burden of credit-fueled growth, and investment as a share of GDP that’s more than twice as high as the developing world average.
Earlier this morning, we gave a rough overview of the global economy. It goes like this: Europe is rebounding, China is doing a tad better than expected, and the US continues along the same path it's been on, which is essentially one of decent, but disappointing performance. So here's a perfect, practical counterpoint to that: Morgan Stanley's European Equity Strategy team has put together 4 big investment ideas to play this world economy. They are: