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”.
Hong Kong (AFP) - Nervous investors dumped high-yielding, risky assets on Tuesday on fears about the global economy, with the Indonesian rupiah and Malaysian ringgit taking a hit and most Asian stock markets retreating.
India’s deepening financial woes, which include a sputtering economy and free-falling markets, could worsen in the days and weeks ahead, fuelling fears of a full-blown crisis emanating from the world’s second-most populous country.
Global stocks continued their selloff this morning, driven by surging speculation about the liquidity, solvency and viability of Deutsche Bank, which plunged 9% after opening in German trading today, dropping to a new all time single-digit low of €9.90, its credit default swaps soared to new all time highs, and its Additional Tier 1 notes fell to record lows (the €1.75BN of 6% bonds dropped five cents on the euro to 70 cents), although losses were cut in half after yet another memo by CEO John Cryan sought to reassure the bank's employees and investors...
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%.
London (AFP) - Fresh Chinese stimulus sparked a global stocks rally Wednesday in markets that had been coloured red by fears of a slowdown in the world's second-largest economy, with Tokyo surging almost 8 percent.
With another listless macro day in the offing, the main event was the previously mentioned Bank of Korea 25 bps rate cut, which coming at a time when everyone else in the world is easing was not too surprising, but was somewhat unexpected in light of persistent inflationary pressures. Either way, the gauntlet at Abenomics has been thrown and any temporary Japanese Yen-driven export gains will likely not persist as it is the quality of products perception (sorry 20th century Toshiba and Sony), that is the primary determinant of end demand, not transitory, FX-driven prices.