But for the last few days, global markets have been in a rout, based on
economic weakness in emerging markets.
There are other reasons to be pessimistic, most notably the ongoing
economic weakness in China and lagging business investment in Canada.
Reading Time: 5 minutes In the past few weeks we have reported on
the economic weakness in Europe.
The signs of
economic weakness in China contributed to a steep drop in the prices of global commodities as well.
Markets are spooked, interest rates are on the rise across the globe, and a manufacturing survey hinted at new
economic weakness in China.
The gap for next year is estimated to be around $ 2 billion dollars, and comes at a time of continued
economic weakness in New York and the nation.
It would be extremely easy for the Fed to use an excuse that
economic weakness in Europe, Asia, Australia, Latin America — pretty much everywhere — requires that they tighten at a sloth's pace.
Stocks are tumbling in Russia, Brazil, Chile, South Africa, Australia and Canada due to
economic weakness in China.
The U.S. government forecasters at EIA expect that U.S. coal exports will fall back to about 110 million tons per year over the next two years, due to
economic weakness in Europe, falling international prices, and competition from other coal - exporting countries.
Additionally, in July 2012 concerns of broad debt defaults and
economic weakness in Europe influenced big decreases in the stock market.
We think we will see another rate decrease, however, because of resurfacing troubles in Europe and recent signs of
economic weakness in the U.S. * The above rate quote has the following assumptions: $ 400,000 Loan Amount; 20 % down payment; credit score above 740; property is SFR; borrower has sufficient income to qualify; APR is approximately 0.20 % higher than quoted rate for a $ 400,000 loan.
Not exact matches
Ironically, the selloff of U.S. stocks began a few weeks ago because of
weakness in the Chinese economy, the devaluation of the yuan, and stock market turmoil
in the Asian nation, which led to serious concerns about a global
economic slowdown.
Other possible factors that officials said could negatively affect the
economic outlook included «persistent
weakness in the housing sector, a continued slow rise
in household income, or spillovers from developments
in the Middle East and Ukraine.»
LONDON, Nov 1 - European shares rose on Thursday, bolstered by relatively robust earnings reports despite
economic weakness, while the euro was flat as uncertainty over how the euro zone will handle crises
in Spain and Greece dragged on.
What's surprising about the
weakness on the West Coast is the absence of any change
in economic fundamentals, such as a spike
in unemployment, to explain it.
The banks demonstrated that their personal and commercial loans businesses are still solid, even as expectations point to consumer lending growth slowing
in the coming quarters amid persistent
economic weakness.
The ECB chief said Monday: «while the exchange rate was not a policy target it was important to growth,» adding that
economic indicators signaled further
weakness in the euro zone.
Stocks
in China, including shares of state - owned companies, plunged after several
economic reports showed
weakness.
Market analysts blamed the destabilizing influence of leverage
in the market for the enduring
weakness, aggravated by a lack of
economic data to support a rally that had seen major indexes rise as much as 150 percent by early June.
November's solid jobs report gave the Fed a final piece of evidence, clearing the way for a December rate hike, but now the question is how fast can it raise rates given
weakness in some other
economic data.
Global bond yields have declined significantly
in recent months, but at a pace and uniformity that suggests either a climax
in yield - seeking or growing concerns about
economic weakness.
In response to
economic weakness, central banks often enact policy that increases the money supply, promotes inflation and reduces interest rates.
With the emerging
weakness in consumer and retail related securities, it's also a trap that suggests more
economic weakness than expected by the consensus.
The concerted weakening
in commodity prices already suggests a global force to this
economic downturn, while further
weakness in the U.S. dollar would suggest that demand for U.S. goods and securities was softening even more sharply than internationally.
In crafting any policy response to near - term
economic weakness, this is a key point.
Following the British vote to exit the European Union, global
economic concerns, coupled with
weakness in the Japanese economy, drove interest rates
in Britain, Europe and Japan to fresh lows, prompting a burst of yield - seeking speculation that has driven the S&P 500 Index a few percent above its May 2015 peak.
In the face of an oil shock and other
weakness, monetary policy is expected to do the heavy lifting of beating an
economic funk.
I suspect the Yellen Fed (correctly) has a much higher tolerance for stock market losses than Bernanke, and that interventions
in the case of market losses and
economic weakness will take a different form than quantitative easing.
Beijing is more likely to believe that the
economic slowdown was caused by been
weakness in domestic real estate and infrastructure construction, and not because exports are weak, and the latest trade dataconfirms the relatively strong export performance.
He would look for
weakness in cyclical names, which are more sensitive to better
economic growth.
The initiation of QE4 would be likely only
in the face of even deeper
economic weakness.
As I noted last week, a strong decline
in Treasury yields would actually be a bad omen here, because it would signal a rush to quality
in the face of rising default risks and possibly fresh
economic weakness.
Moreover, some of our wholesale and retail distributors may have insufficient financial resources and may not be able to withstand changes
in business conditions, including
economic weakness and industry consolidation.
It is highly unusual for both to occur together, so a simultaneous drop
in both Treasury yields and the dollar would be a very powerful signal of impending
economic weakness.
Weakness in housing and financial sectors suggests
economic slowdown will continue into 2018, says Philip Cross, author of MLI's Leading Economic In
economic slowdown will continue into 2018, says Philip Cross, author of MLI's Leading
Economic In
Economic Indicator.
On the surface, you really can't argue it —
economic growth contracted by more than the Bank anticipated
in Q1, and that
weakness (again, a 0.065 % monthly decline) stretched into the start of Q2.
The
economic growth, at the present time, and
in the future years will at least assist to offset the international
weakness and buoy up the
economic growth of the economy, according to the latest update released January 28,...
With the bear market that started
in 2011 likely being over, further hints on
economic weakness could cause a sustainable rally gold, even without a clear signal from the central banks that,
in fact, interest rates will remain depressed for the foreseeable future.
The Great British Pound is showing some relative strength finally, as the bullish Employment Report helped the currency, despite the persistent Brexit worries and the recent
weakness in economic numbers.
In my view, the most likely accompaniment to economic weakness would not be a decline in nominal rates, but somewhat accelerated inflation (meaning that real interest rates might very well fall to negative levels), and possibly substantial weakness in the U.S. dolla
In my view, the most likely accompaniment to
economic weakness would not be a decline
in nominal rates, but somewhat accelerated inflation (meaning that real interest rates might very well fall to negative levels), and possibly substantial weakness in the U.S. dolla
in nominal rates, but somewhat accelerated inflation (meaning that real interest rates might very well fall to negative levels), and possibly substantial
weakness in the U.S. dolla
in the U.S. dollar.
From the perspective of the people pulling the monetary levers, it provides carte blanche for more money - conjuring
in response to
economic weakness.
While the decision to leave the EU has caused notable market upheaval, global market declines were actually more extreme
in the first few months of 2016 due to significant commodity price
weakness, concerns regarding slowed
economic growth
in the U.S. and China, and monetary decisions by major central banks.
Central banks will continue to create money
in response to
economic weakness until blatant «price inflation» stops them.
Needless to say, unanticipated
economic weakness could force a downward adjustment
in expectations for future earnings and is inconsistent with highly valued financial assets.
As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and
weakness in the ISM Purchasing Managers Index
in the months ahead, and; 4) there remains substantial potential for U.S. dollar
weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe
economic weakness.
Even if we do observe
economic weakness, it's not likely
in my view that the Fed will have much leeway to cut rates, due to persistent inflation pressures (which have historically been associated with profligate government spending of precisely the sort that has been revived
in the past few years).
With China's increasing domestic demand for gold,
economic growth trends and continued
weakness in the Chinese stock market, some analysts expect gold prices to reach new highs.
While the recent
economic numbers still look more favorable
in the Eurozone than the US, the exuberant buying
in the common currency could already lead to
weakness in the area, and the current strength might very well be cyclical
in nature to begin with.
An ample cash balance and a manageable debt load are obviously preferable, as these qualities afford a company greater flexibility to invest
in operations and provide added cushion during periods of
economic weakness.
On the
economic front, I believe that the most consistent interpretation of the data is that of an economy that is generally deteriorating, but where the
weakness in leading indicators hasn't filtered through to the most lagging ones.