Low interest rates support high stock valuations.
Archives of “Economy” category
rssChina non-financial corporate debt to GDP reaches a new all-time high according to the BIS
Japan maintains its assessment of the economy for the month of December
No change to the main language for a sixth straight month
The Japanese government still sees economic conditions as ‘severe’ though they are seeing some signs of improvement in trade, corporate earnings and bankruptcies. However, they lowered their assessment for private consumption.
80% of U.S. wealth is held by people 60 and over
The Fed has flooded the market with liquidity.
Germany December Ifo business climate index 92.1 vs 90.0 expected
Latest data released by Ifo – 18 December 2020
- Prior 90.7
- Expectations 92.8 vs 92.5 expected
- Prior 91.5
- Current assessment 91.3 vs 89.0 expected
- Prior 90.0
Slight delay in the release by the source.
China November Industrial Production 7.0% y/y (vs. expected 7.0%)
Chinese ‘activity’ data for November 2020.
Industrial Production 7.0% y/y
- expected 7.0%, prior was 6.9%
Industrial Production YTD 2.3% y/y
- expected 2.3%, prior was 1.8%
Fixed Assets (excluding rural) YTD 2.6% y/y
- expected 2.6%, prior was 1.8%
Retail Sales 5.0% y/y
- expected 5.0%, prior was 4.3%
Retail Sales YTD -4.8% y/y …. the only ‘beat’, not as negative as expected
- expected -4.9%, prior was -5.9%
Huh. All central expectations are bang on the money except for that one tiny beat noted above.
printing money creates inflation they said
Economic data coming up in the European session
The ECB is the main highlight on the agenda today
However, Brexit headlines will also continue to do the rounds and hog the spotlight as the meeting between Boris Johnson and Ursula von der Leyen yesterday reaffirmed that negotiations will continue through to the weekend.
The new Brexit “deadline” is now Sunday, 13 December, as such.
Eurozone Q3 final GDP +12.5% vs +12.6% q/q second estimate
Latest data released by Eurostat – 8 December 2020
- Q3 final GDP -4.3% vs -4.4% y/y second estimate
The secondary release can be found here. Little change compared to the second estimates so there really isn’t much of anything new to gather from the release here.