Never Mind Greece, Here's The Global Data
Sober Look | Jun 26, 2015 08:17AM ET
More evidence is emerging that Greece stands on its own when it comes to euro area exit risks. Unlike in the 2011/12 period, capital outflows are not an issue elsewhere in the Eurozone periphery. Whether now or in six months, the troika leadership is increasingly more comfortable to let Greece go should other options are exhausted.
Once again, it's important to point out that the most adamant supporter of forcing Greece to stick with austerity is not Germany. It is states such as Slovenia who are poor and had to tighten spending significantly. They do not want to see their taxpayers' money used for Greek debt forgiveness.
In other Eurozone developments, the area's money market funds are struggling with negative rates. Repo rates are not only negative but the liquidity in the market has declined. How do you attract depositors into a non-bank account with this?
Switching to Asia, the Shanghai composite is now down 16% from the high as the volatility spikes.
Tokyo CPI comes out a month ahead of the national CPI and tends to be a good predictor of price increases across the country. The Bank of Japan's 2% inflation target remains elusive.
Japan's labour markets have tightened substantially, driven by increased hiring needs as well as labour shortages due to the aging population.
Brazil's unemployment reached a five-year high – this is no longer a seasonal increase. Political instability related to the Petrobras investigation sent shares and the currency lower and the CDS spreads wider on Thursday.
In the United States we continue to see a mixed economic picture:
Get The News You Want
1. Consumer spending jumped more than expected.
2. The Atlanta Fed US GDP tracker for Q2 reached 2.1%.
3. On the other hand, here is the Kansas City Fed Manufacturing Production Index.
4. Markit PMI showed that US services sector growth has slowed. The report was weaker than consensus.
Disclosure: Originally published at Saxo Bank TradingFloor.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.