The stock markets of the 2 most economically influential countries in the emerging world, China and India, have modestly broken out. The Shanghai index closed higher by .8% to a 3 month high and the Indian Sensex index traded higher by 1.1%, closing at the highest since Feb ’08. Copper in response is at a 2 week high. European stocks are higher after the Bundesbank raised its ’10 GDP estimate to 3% from 1.9% after the strong Q2 report. July retail sales in the UK were above forecasts. Combining these 2 items with a higher than expected July PPI # in Germany has European bonds modestly lower and Treasuries are following. With 20 yrs of malaise, a Japanese newspaper is saying the BoJ may expand further a credit program and they are still evaluating the economic impact of a stronger yen. From Jan ’03 to Mar ’04, the BoJ spent 35T yen (about $320B) intervening and it failed miserably and the experience will influence what the BoJ may or may not do.
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.