Let's start with interest rates, especially after the call from China and Japan yesterday for U.S to raise interest rates
Which links to Real GDP Growth YOY.
From the data, it is understandable why Japan is concerned about the U.S interest rate keeping the Yen high against the dollar.
The economic figures link to the jobless data
Which continues to be a concern especially in the U.S., leading to depressed Consumer Sentiment in the U.S. , the biggest consumer market and lower Inflation data in Europe.
The tight monetary policy in the U.S. also creates concern about deflationary effects.
Need to watch markets to see how these effects kick-in once the economic stimulus packages start to be removed this coming fiscal year.
What is clear, is for my Fixed Deposits, I am looking down under.
All charts from http://www.tradingeconomics.com/
No comments:
Post a Comment