Financial Markets…Global stock markets rallied on Friday, with the benchmark MSCI world equity index hitting a 20-month high level of 552.16, as positive economic data from the two world’s largest economies boosted market sentiment. Along with robust U.S. labor and housing market reports, China’s better-than-expected fourth-quarter GDP growth (y/y), buoyant industrial production and retail sales figures added to signs that the global economic recovery is gaining traction.
The Prospects Daily will be on Winter recess and will resume on
Wednesday January 2nd, 2013.
- United States
- United Kingdom
- Latin America & Caribbean
- Europe and Central Asia
- East Asia and Pacific
- Macroeconomics and Economic Growth
- Financial Sector
- retail sales
- Industrial Production
- global unemployment
- Global financial markets
- Global equities
- GDP growth
- consumer confidence
|Flows into the bond and equity funds of developing countries rallied in the second half of this year amid stabilization of financial markets and quantitative easing in high income countries.|
Financial Markets…US treasuries gained and the benchmark 10-year bond yield edged down 1 basis point to 1.66%, after rising as high as 1.7% earlier, while the 30-year bond yield slid by 2 bps to 2.83% in early Friday session after a government report on wholesale price in September showed domestic inflation remained muted.
Old problems, wider tensions? In a momentous two weeks that saw two of the euro area (EA) countries under joint EU/IMF programs have their sovereign debt downgraded to “junk” status, market tensions widened to include two larger economies that together represent almost thirty percent of the whole EA GDP. Is this behavior by the markets truly justified?
Important developments today:
1. Argentina’s reopening of its debt exchange offer aims to put its record default in 2001 behind
2. U.S. Q3 GDP growth revised up to 2.6%