Uncertainty about U.S. fiscal policy, Europe’s sovereign crisis and slower global growth have turned the U.S. economy into what feels like a slow-moving zombie, leaving businesses and consumers hesitant and reluctant to act.
Negative signal to the markets published last Sunday by:
* FT http://www.ft.com
* I Know First stock forecast system http://iknowfirst.com/
In line with your Forecast US economy Losing Steam: The June results indicate the consumer was losing steam as the quarter drew to a close. Household spending rose 1.5 percent from April through June, the slowest pace in a year, according to government data last week. Gross domestic product also climbed at a 1.5 percent annual rate, cooling from a 2 percent pace in the prior three months.
Stocks tilted mostly lower Tuesday as media reports chilled optimism that Europe would take bold steps to curb its debt crisis.
“The Germans want the big bazooka kept on the sidelines,” Peter Boockvar, equity strategist at Miller Tabak, wrote in an email.
Bloomberg News reported the German Finance Ministry said it did not see any need to give the European Stability Mechanism a bank license.
The European Central Bank is thinking the unthinkable to save the euro, including resuming its controversial bond-buying program and possibly even pursuing quantitative easing - in effect printing money.
Do you believe them???
U.S. Treasury Secretary Timothy Geithner and German Finance Minister Wolfgang Schäuble said Monday that they have confidence in efforts to fight the euro-zone debt crisis, but urged continued implementation of reform policies.
The two, who have at times been at odds over how the European Union should resolve its problems, had "an open exchange of views on global, U.S., and European economies," they said in a joint statement.
Mr. Geithner has been pressing for Germany to support aggressive action by euro-zone authorities to fix their debt and banking problems. The U.S. believes that the European Central Bank and the EU's massive bailout fund could help recapitalize weak European banks, quickly build a pan-euro banking union and act to lower sovereign borrowing costs, buying time for the ailing euro economies to implement tough reforms.
Quantitative easing (QE) in the U.S. has typically been a recipe for higher prices in Asia, and a signal for investors to seek refuge in hard commodities or currencies. For Hong Kong, with its pegged exchange rate, the result is invariably an inflationary and asset-price surge — particularly unwelcome when property prices are at all time highs.