The market has recently taken relief from the decision by China to lower the reserve requirement ratio (RRR) as well as the signal that it will be the first of a series of cuts. The real story however is that the shift comes in response to a sharp slowdown in both domestic and external demand in the first quarter of 2012 and thus it seems that investors may have taken too much comfort in the strong Q4-11 GDP print.
Independent Global Macroeconomic Research
Structural labour market issues in the US point to looser for longer at the Fed
Employment in the US is closely watched, especially as the Fed has marked it out as an important factor in how it will judge its stance in monetary policy. Payrolls have [...]
NYSE Margin Debt Going Parabolic Signals Increased Risks for Equities
In the short run, it is difficult to see what can stop equities at this point. Low inflation, central bank support and relatively robust economic data have created a [...]
Buying Time in Portugal Unlikely to Improve Fundamentals
The spotlight remained on Portugal the end of last week as EU finance ministers agreed to give the country seven more years to repay its stock of existing loans. Still, [...]
