The early-morning World Bank economic downgrade heavily weighed on
investor sentiment yesterday, sending global stocks lower as a
consequence. Another economic downgrade from the World Bank came as no
surprise to be honest, with progress over the global recovery continuing
to remain in question. The completely unexpected fire-sale in oil is
also contributing to global economic uncertainty, with this not only
impacting nations heavily-reliant on oil exports, but also those
economies heavily-linked to declining commodity prices. The sudden crash
in oil prices has triggered a an unexpected period of low inflation,
which is going to put a lengthy delay on the Bank of England (BoE)
raising UK interest rates and lead to the US economy having to carry the
baton on its own in the race to economic recovery.
Speaking of the United States economy, there was an unexpected setback when US Retail Sales declined far more than forecast during December. The expectation was a decline of 0.1% with the data coming in at a much higher 0.9%. The larger-than-expected decline in retail sales also sent stocks lower with the timing of the data being quite unfortunate, bearing in mind we had only hours earlier received a global economic downgrade.
Read more Click here / www.trade4x.net
Speaking of the United States economy, there was an unexpected setback when US Retail Sales declined far more than forecast during December. The expectation was a decline of 0.1% with the data coming in at a much higher 0.9%. The larger-than-expected decline in retail sales also sent stocks lower with the timing of the data being quite unfortunate, bearing in mind we had only hours earlier received a global economic downgrade.
Read more Click here / www.trade4x.net
No comments:
Post a Comment