China’s GDP reportedly grew 7.9% in the second quarter

China GDP

The country’s gross domestic product (GDP) reportedly increased 7.9% in the second quarter from a year ago, the National Bureau of Statistics reported Thursday. Retail sales rose 12.1% in June from a year ago. Industrial production grew by 8.3%. Sustained recovery China’s economy sustained a steady recovery – the statistics bureau reportedly said. But the bureau added there were still concerns about the global spread of the pandemic and ‘unbalanced’ recovery domestically. But… On the face of it these numbers are pretty impressive – they usually are. But in other…

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Fed keeps money tap open and flowing

Running tap with money

‘Ways off’ Jerome Powell – the Fed chair, said in a prepared statement yesterday that they are still a ‘ways off’ from altering policy and he expects inflation to moderate as it is seen as a temporary situation. He said that the economy needs to improve more before the central bank will change its ultra easy monetary policy. So no change there then – cheap free flow of money to be pumped further in to the all ready over expanded stock market. Jobs He also said that the labour market…

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U.S. inflation spreads through economy at 5.4% its biggest rise since 2008

Inflation

Secondhand vehicle purchases, car, van and truck rental, food, energy, clothing, travel (plane) tickets and hotels rose sharply in June 2021 The cost of living climbed by the largest amount since 2008 as inflation spreads more broadly through the U.S. economy. Transitory inflation? Fresh questions about whether the spike in prices will subside as quickly as the Federal Reserve predicts are back in focus again. Some analysts are now saying that not only is the U.S. economy hot – it is white hot! Price jump For the 12 month period,…

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Dow touches 35000 as big earnings data due

Stock markets up

New Dow record just short of 35000 Dow Jones Industrial Average on Monday closed just shy of 35000 after gaining 126 on the day. Earnings report Second quarter earnings season kicks off this week with earnings from two big banks, along with some other companies. Pepsi co. came up with earning beat. Banks are expected to release stellar results too. Inflation The market will also be watching a key inflation report due today at 13:30 (BST) with the release of June’s Consumer Price Index (CPI). CPI is expected to increase…

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Dow S&P 500 & Nasdaq reach new records… again!

U.S. stock records

After a weird week for U.S. stocks – the Dow, S&P 500 and Nasdaq yet again notch new records on Friday after losing ground during the week Inflation and growth Do you believe stalling economic growth is a bigger threat than inflation? Right now I have less of an idea that at the beginning of the week. What is going on? Fears of runaway inflation have been swapped for worries about a rapid slowdown in global economic growth. As I see it there are three obvious elements in the shift…

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Major U.S. stocks fell Thursday on concerns of global economic recovery

Stock market red

Major U.S. stock indexes fell Thursday on concerns of a slowing global economic comeback from the pandemic. The losses came as countries grappled with a fresh virus cases due to Covid variants. Japan declared a state of emergency in Tokyo and said the games will be spectator free. Indices drop The Dow Jones Industrial Average dropped 260 points. The S&P 500 closed down at 4321 and the Nasdaq closed down at: 14559 – coming off recent record highs. The Dow in intra-day trading was down by as much as 535 points. Some…

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UK housing supply will continue to keep house prices high according to RICS

Property for sale

House prices set to continue rising as housing supply reduces A lack of available properties is pushing house prices up, according to a surveyors report released Thursday 8th July 2021. As a result, a majority of Royal Institution of Chartered Surveyors (RICS) members believe prices will continue to rise during the next year. The supply shortage suggests the number of new properties coming to market fell by a third in June 2021. All parts of the UK continued to report strong increases in house prices. With demand increasing and supply…

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OECD says Covid-19 has destroyed 22 million jobs and new Covid variants a top risk to economic recovery

Pandemic and the economy

Main points from OECD statement 22 million jobs have been lost in advanced economies due to the pandemic Job retention schemes have saved around 21 million jobs Wealthy countries face the threat of rising long-term unemployment Low skilled workers will most feel the sustained affect of unemployment as these sectors are disproportionately affected by the pandemic Employment recovery forecast for third quarter 2023 Younger generation severely impacted New outbreaks of Covid-19 remain one of the top risks to a global economic recovery Like other officials, he called for developed nations…

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S&P 500 & Nasdaq notch up fresh records with Big Tech in favour

Record highs

All time records set again The S&P 500 rose to an all time high of: 4358 The Nasdaq closed at an all time high of: 14664 Big tech stocks do the heavy lifting Popular technology and internet stocks once again outperformed the market on Wednesday 7th July 2021. Investors bought growth stocks instead of the reopening sectors that were in favour last month and proved popular in the first half of the year. Apple, Microsoft and Amazon were all up on Wednesday each reaching double digits gains over the last…

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UK house prices slip as stamp duty deal phased out

Property

Halifax housing data The Halifax data out today, suggested house prices dipped 0.5% in June as the stamp duty holiday began to be phased out. Prices were up 8.8% over the year, leaving average prices still more than £21,000 higher, following a recent period of gains. In the last year the UK housing market was stimulated by a stamp duty tax holiday introduced by the government to boost the property market. This is now being phased out as the economy recovers from the pandemic. From June 2020, buyers didn’t have…

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