The China led market correction continues as the Shanghai index fell to a 3 month low and the Hang Seng dropped to a 5 month low. Both are down about 12-13% from their ’09 high in response to policy steps by China to cool loan growth. After the Nikkei closed, S&P revised Japan’s sovereign credit outlook to negative from stable due to their “diminishing economic policy flexibility” with net debt at 100% of GDP which may rise to 115% over the next several years. Japan’s CDS are rising 3 bps to 87, the highest since Apr ’09 and in line with the Czech Republic. Germany’s IFO business confidence # rose to the highest since July ’08 and was a touch more than expected and French consumer spending was above forecasts but the euro is lower on the global market pullback. After 6 quarters of m/o/m declines, the UK economy grew in Q4 by a whopping .1%, .3% less than expected. The FOMC begins their 2 day meeting and oh to be a fly on the wall.

Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

Comments are closed.