Europe and the United States Stock Market Rebound Pushing Liquidity Into the Hands
European earnings season drawing to a close, the market once again focus on economic fundamentals. Disappointing economic data revived investors in Europe and the United States as well as concerns about slowing global economic recovery, European stock markets continued to fall last week. But analysts believe that global central banks continue to rise in the stock market liquidity will be the driving force, while European stock markets are expected to become a pioneer in global stock markets rebounded.
European Central Bank or the first quarter of next year out of
As a “European engines” of economic expectations in Germany to 2.2% of the chain growth ahead, the German central bank also raised last week, the country’s economic growth forecast this year to 3%. However, the German economy, optimism and confidence into the market did not, last Friday the country, French President Nicolas Sarkozy’s economic growth expected in 2011 from the previous 2.5% to 2%.
French government said, even if the economy slowdown, the Government must Zai 2011 budget deficit-GDP Bi Li Qiang to 6% for the French government overwhelmed by Wu Yi to the European Union speech the other Chengyuan Guo Xian Shi deficit reduction ambition of its Zhili Yu. Last Friday, the European Central Bank council member Axel Weber said the ECB will consider whether the first quarter of next year out of emergency measures, by this news, the euro-dollar exchange rate fell to a month low.
U.S. second quarter GDP revised downward
Most recently released economic data show that slowing U.S. economic recovery, U.S. economic cycle, independent economic research institute (ECRI) said that as of August 14 in the week, a measure of potential future growth of U.S. economy weeks since the index hit a low of three weeks, and further that the U.S. economic recovery momentum is slowing.
This week, the U.S. Commerce Department will release the revised second quarter GDP, the market is widely expected, given the recent series of weaker than expected economic data, the U.S. second quarter GDP growth of 2.4% from the initial revised down sharply to 1.4 %.
Japanese Government today to discuss currency revaluation
Poor economic data in the United States, the Federal Reserve is expected to restart the quantitative easing policy of continued warming, driven by appreciation of the yen suddenly speed up, strong yen once again become the focus of the market. Japan 10 furniture representative of non-governmental economic research institutions to appreciation of the yen against the country’s export industry grounds, have revised down economic growth in Japan this year’s expected, You had expected a 2.5% adjusted down to 1.9%. It is reported that a Japanese prime minister this week, the Bank of Japan Naoto Kan and the party line Shirakawa will hold a meeting tomorrow to discuss the appreciation of the yen and the possible introduction of a response.
Europe’s leading stock market is expected to rebound
Last Friday, Europe and the United States stock market downturn, the Dow and S & P 500 index for the second consecutive week of losses. Some analysts said that while the European earnings season drawing to a close, the majority of company performance is still strong, but the next few months, slowing global economic growth will put pressure on investor confidence.
EPFR GLobal fund tracking agency data provided in the August 12 to 18, the emerging market stock fund net inflows began to shrink the size, but the emerging markets bond mutual fund flow is further expanded. Some analysts say the emerging market bond funds have always been regarded as risky assets, these funds remain successful “smoking money” does not show complete loss of investor confidence, pessimism has eased.
Emerging markets investment professionals Mobius said last week that the global economic downturn may be secondary concerns will force the world’s central banks to maintain liquidity, thus facilitating the performance of global stock markets. HSBC Global Asset Management also believes that the fourth quarter of this year is expected to launch a new round of global stock markets rise, the world’s central banks continue to rise in the stock market liquidity will be the driving force. Some analysts expect the European market is expected to become the vanguard of the global stock market rebound.
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