Market
Conference
Are these signs of global economic recovery?
作者：25 发布时间：2010-06-04 文字大小：【大】【中】【小】
Commodity Online
When the media is rife with news of markets getting depressed due to European debt concerns and inflationary pressure in USA, some recent developments indeed suggest a rebound in global economy. Consider these:
The equity markets are suddenly gaining this week. On Wednesday the Dow Jones industrial average .DJI gained 225.52 points, or 2.25 percent, to 10,249.54. The Standard & Poor's 500 Index .SPX rose 27.67 points, or 2.58 percent, to 1,098.38. The Nasdaq Composite Index .IXIC climbed 58.74 points, or 2.64 percent, to 2,281.07.
This week the US economic indicators have poised some amount of confidence in investors which has led to a gain in crude oil prices for the second day along with President Barack Obama's assertions that monthly jobs report due on Friday would show storng growth in US payrolls.
Japan's Nikkei average surged over 3 percent to a two-week high on Thursday, posting its biggest one day percentage gain in six months, with foreign investors tentatively re-entering the market and technical signs turning brighter. .
Baltic Dry Index
The Baltic Dry Shipping Index has surged over 20% to trade at the highest level in six months. The index is a leading economic indicator used by market insiders to gauge global demand for dry commodities. Analysts point out that fundamentally, the commodity demand is strong especially in emerging economies and after the closing of iron ore negotiations in March and April, the iron ore flow towards China is intensifying which has brightened the prospects in shipping and logistics.
India GDP growth
A sharp rebound in industry and services combined with a better-than-expected farm output helped the Indian economy grow by 7.4 per cent in 2009-10. The expected results: more jobs, more wealth. India's GDP grew by 8.6% in the quarter ended March 31, 2010 driven by a robust 16.3% growth in manufacturing sector as companies expand capacity to meet rising demand.
India's Finance Minister Pranab Mukherjee has said that the current economic momentum will remain intact for the future.Growth of the Indian economy slowed to 6.7 per cent in 2008-09 after growing at close to 9 per cent for four years.
US Pending Home Sales
Pending home sales in the US jumped 6 per cent in April as homebuyers took advantage of a popular tax credit ahead of its April 30 expiration. The jump in pending sales, defined as those that have been signed but not closed, came after two months of strong gains, according to data released on Wednesday from the National Association of Realtors. Pending sales are 22.4 per cent higher than their levels a year ago. The north-east saw a particularly strong monthly jump, with sales rising almost 30 per cent in April, Financial Times reported.
Housing prices, whose collapse sparked the financial crisis, had shown signs of strengthening amid government supports. But last month, prices extended their declines as the end of the homebuyer credit drew near. Prices, which more than doubled from 2000 to their 2006 high, have subsequently fallen more than 30 per cent, but remain 3 per cent above their cyclical low.
Sales of previously owned homes jumped 7.6 per cent in April, one of its strongest monthly gains on record, according to separate NAR data released earlier this month.
Automobile sales from across regions have surged even as much of Europe and US are reportedly hit by recessionary trends while China has become a net importer of grains thanks to drought and higher domestic prices forcing the nation to import more.
Are the factors cited above sufficient enough to conclude for investors that global recovery is already happening? (Readers may please send their comments to news@commodityonline)
Sourced from www.commodityonline.com
When the media is rife with news of markets getting depressed due to European debt concerns and inflationary pressure in USA, some recent developments indeed suggest a rebound in global economy. Consider these:
The equity markets are suddenly gaining this week. On Wednesday the Dow Jones industrial average .DJI gained 225.52 points, or 2.25 percent, to 10,249.54. The Standard & Poor's 500 Index .SPX rose 27.67 points, or 2.58 percent, to 1,098.38. The Nasdaq Composite Index .IXIC climbed 58.74 points, or 2.64 percent, to 2,281.07.
This week the US economic indicators have poised some amount of confidence in investors which has led to a gain in crude oil prices for the second day along with President Barack Obama's assertions that monthly jobs report due on Friday would show storng growth in US payrolls.
Japan's Nikkei average surged over 3 percent to a two-week high on Thursday, posting its biggest one day percentage gain in six months, with foreign investors tentatively re-entering the market and technical signs turning brighter. .
Baltic Dry Index
The Baltic Dry Shipping Index has surged over 20% to trade at the highest level in six months. The index is a leading economic indicator used by market insiders to gauge global demand for dry commodities. Analysts point out that fundamentally, the commodity demand is strong especially in emerging economies and after the closing of iron ore negotiations in March and April, the iron ore flow towards China is intensifying which has brightened the prospects in shipping and logistics.
India GDP growth
A sharp rebound in industry and services combined with a better-than-expected farm output helped the Indian economy grow by 7.4 per cent in 2009-10. The expected results: more jobs, more wealth. India's GDP grew by 8.6% in the quarter ended March 31, 2010 driven by a robust 16.3% growth in manufacturing sector as companies expand capacity to meet rising demand.
India's Finance Minister Pranab Mukherjee has said that the current economic momentum will remain intact for the future.Growth of the Indian economy slowed to 6.7 per cent in 2008-09 after growing at close to 9 per cent for four years.
US Pending Home Sales
Pending home sales in the US jumped 6 per cent in April as homebuyers took advantage of a popular tax credit ahead of its April 30 expiration. The jump in pending sales, defined as those that have been signed but not closed, came after two months of strong gains, according to data released on Wednesday from the National Association of Realtors. Pending sales are 22.4 per cent higher than their levels a year ago. The north-east saw a particularly strong monthly jump, with sales rising almost 30 per cent in April, Financial Times reported.
Housing prices, whose collapse sparked the financial crisis, had shown signs of strengthening amid government supports. But last month, prices extended their declines as the end of the homebuyer credit drew near. Prices, which more than doubled from 2000 to their 2006 high, have subsequently fallen more than 30 per cent, but remain 3 per cent above their cyclical low.
Sales of previously owned homes jumped 7.6 per cent in April, one of its strongest monthly gains on record, according to separate NAR data released earlier this month.
Automobile sales from across regions have surged even as much of Europe and US are reportedly hit by recessionary trends while China has become a net importer of grains thanks to drought and higher domestic prices forcing the nation to import more.
Are the factors cited above sufficient enough to conclude for investors that global recovery is already happening? (Readers may please send their comments to news@commodityonline)
Sourced from www.commodityonline.com
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