2014년 8월 16일 토요일

August Week 2 Market Review

China's and Japan's markets stay high even though their economic data showed economic slowdown and (temporarily) recession. While the week started to rebound from last week's loss, the market kept bouncing up and down with geopolitical issues and bad economic indicators.

Highlight of the week was China's M2 momey supply decreased to 13.5% from 14.7% last month while new credit declined new credit to $385 billion from $1,080 billion in June. Japan announced that its Q2 GDP growth was -1.7% QoQ; -6.8% YoY.

Even the indicators was disastrous, investors expect additional stimulus from the government, which eventually bounced back the stock market.

S&P 500 continued to rise as company's earning has been improved. Even retail sales stagnated, geopolitical risks eased and decline in labor market suggests that tapering won't be implemented soon. German's market collapsed it experienced contraction in Q2, and geopolitical risk expanded on Friday (Ukraine troops attacked Russia).

EUR/USD stays almost the same as geopolitical tensions expanded at the end of week and expectation of stimulus rose.

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