·
Central banks in Eurozone,
Britain and China acted, but financial markets have already absorbed the run of
shocking data since mid-April. As a result, ‘surprises’ outnumbered ‘shocks’
for the second week running.
·
The US generates
enough surprise, particularly from labour markets, to sketch a closing bracket
to the soft patch. In Europe, expectations are so black now that even ‘dark
grey data’ registers as sunny. In Asia, corporate Japan’s bullishness is
genuinely surprising, and turns up in various Asian data-points.
·
Commodities
deflation so far is sustaining rather than eroding industrial operating
margins. In the US, input prices fell the most since April 09; in Taiwan WPI
and Import Price Indexes showed rises in margins and terms of trade
respectively.
·
The outlier is
China’s domestic economy, where service sector prices fell the sharpest for 38
months.
This is an extract from a weekly four-page publication "Global Shocks & Surprises" which summarises developments in US, Asia and Europe, and draws out the key messages from the data in a concise form. If you wish to take a look at this please email me at michael.taylor18@btconnect.com
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