The past few days were very volatile for global markets and currencies. A number of factors combined to cause this volatility and although many of the affected markets and currencies have rebounded slightly by now, it is important to look at the factors that caused the dramatic ups and downs.
Declining factory numbers out of China increased concern that the world’s second largest economy i ...
European inflation fell to 1.2%, the lowest level in 3 years, as consumer prices on many items declined in a number of countries. As the European Central Bank will want to avoid the possibility of deflation, another interest rate cut may be seen in the next few months.
US inflation dropped by 0.4%, the biggest decrease since 2008. This news should make the Federal Reserve more comfortab ...
On the international front, Korea and Australia cut interest rates this week to provide stimulus to their economies. These countries are both mainly exporters and lower interest rates will help stimulate their domestic consumption as well as reduce the strength of their currencies to make their products cheaper on the global marketplace. Some analysts view Korea’s move as specifically tar ...
The European Central Bank cut its main rate by 0.25% today in an effort to provide additional stimulus to the troubled European economy. This should cause the Euro to weaken slightly against other currencies which will assist exports by making European products less expensive. However, most analysts consider this move to be too little, too late. Banks in Europe already have substantia ...
The latest GDP numbers from the UK showed positive economic growth although just barely at 0.3% growth. This was enough to strengthen the pound by over 1% against the US dollar. Jobless numbers in Spain are now over 27%. However, there is renewed hope that the European Central Bank will cut interest rates next week to provide more stimulus to the region's economies.
Improving employment nu ...
Lower than expected growth in China caused markets to reduce positions in commodity heavy countries, such as Canada, earlier this week. While the latest numbers showed growth in China at 7.7%, which is still very high compared to most industrialized nations, this is a lower number than expected for a country that is one of the global economic drivers.
The US economy remains on track with po ...
In Europe, the continued availability of low interest loans is providing optimism that economic growth still has a chance. After a number of years of failed austerity policies, anything that can promote positive economic growth is a welcome sight to the beleaguered European economy. The bailout of Cyprus continues and although the negative headlines continue to worry some, the relatively ...
This week, I have invited Jason McLean, Mortgage Broker with Garibaldi Mortgage here in Whistler, to publish his weekly "McLean's Market Musings" on the blog. Jason offers a wealth of information and knowledge to those looking for financing options on properties here in the Sea to Sky corridor and a keen sense of the global economy. If you have questions about mortgages and financing on pha ...