Fear Back in the Market: Cyclicals Big Losers Last Week
Saxo Bank | Mar 12, 2012 06:38AM ET
Cyclicals were again the big losers for the second week in a row, as investors continued to take their profits from the previous rally. Mining and energy got hurt when the Chinese government lowered its growth target to 7.5% to control inflation, lowering overall global growth expectations for 2012. China reported its biggest trading deficit in 22 years with a USD 32bn outflow, affected by the slowdown in Europe. Not is all bad news, as the US continues its better-than-expected increase in employment numbers, which again surprised on the upside. This bodes negatively for investors looking for QE3 out of the US. The US still faces an uphill battle, as Q1 GDP growth is expected to be around 1%.
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