Global markets rose Wednesday on hopes that financial authorities in the U.S. and Europe may take action to stimulate economic growth and ease the financial turmoil that is threatening to tear apart the 17-country eurozone.
Hours after the IMF cut its global economic growth forecast yet again (which for the permabullish IMF is now a quarterly tradition as we will shortly show), now expecting 3.5% and 3.7% growth in 2015 and 2016, both 0.3% lower than the previous estimate (but... but...
LONDON — Signs of a deal to avert an economically damaging U.S. debt default boosted world equity markets and the dollar on Tuesday, though firm short-term interest rates highlighted concerns that the problem may just be postponed.
Hopes rose after U.S. Senate Majority Leader Harry Reid, a Democrat, and his Republican counterpart, Mitch McConnell, ended a day of talks on Monday, with Reid saying they had made “tremendous progress”.
Martin SantaBRUSSELS — The German and French economies grew faster than the United States in the second quarter, pulling the eurozone out of its longest recession.
Growth in the 17-country bloc was 0.3% from the previous quarter, with its two biggest economies both revealing unexpected strength, data from the European Union’s statistics office Eurostat showed on Wednesday. A Reuters poll had forecast 0.2%.
The euro-area economy will shrink in back-to-back years for the first time, driving unemployment higher as governments, consumers and companies curb spending, the European Commission said.
Gross domestic product in the 17-nation region will fall 0.3% this year, compared with a November prediction of 0.1% growth, the Brussels-based commission forecast Friday. Unemployment will climb to 12.2%, up from the previous estimate of 11.8% and 11.4% last year.
A pledge by Spain to cut its budget deficit and positive European economic data eased concerns that the eurozone crisis could hit the global recovery, lifting Asian markets and the euro Thursday.Sentiment was also bolstered after US shares rallied on data showing exports and imports soared, pointing to continuing improvement in global trade, while a flurry of strong corporate earnings results lifted Japanese shares.