A model makes a face while being made up before the Herve Leger by Max Azria Spring/Summer 2014 collection show during New York Fashion Week, September 7, 2013.
Markets had a huge day on little news out of the U.S.
First, the scoreboard:
- Dow: 15,063.1, +140.6, +0.9 %
- S&P 500: 1,671.7, +16.5, +1.0%
- NASDAQ: 3,706.1, +46.1, +1.2%
And now the top stories:
- Overnight, Asia offered some good news about the global economy. First, China's exports jumped by 7.2% in August, which was much stronger than the 5.5% expected by economists.
- Japan's Q2 GDP growth rate was revised up to 3.8% from an earlier estimate of 2.6%. This adds to evidence that suggests Prime Minster Shinzo Abe's ambitious plan to stimulate the economy is working. Meanwhile, Japan also learned this weekend that it would be hosting the 2020 Summer Olympic Games.
- In the U.S., we learned that consumer credit balances expanded by just $10.4 billion in July. This was lower than the $12.7 billion expected by economists. Revolving credit (e.g. credit cards) fell $1.8 billion to $849.8 billion. Non-revolving credit (e.g. student loans, auto loans, et al.) rose $12.3 billion to $2.002 trillion.
- According to Bloomberg's Hugh Son, Bank of America expects to cut 2,100 jobs in its mortgage units. Demand for mortgage loans have been hit due to rising interest rates. Combined with surging home prices, housing affordability has tumbled to a multi-year low.
- "The world i s approaching a major turning point in its demographic trajectory and we think that the shift is likely to be sooner and sharper than mainstream projections suggest," said Deutsche Bank global strategist Sanjeev Sanyal."Of course, overall world population will still expand for a couple more decades due to momentum in the age structure and rising longevity, but this lagged effect will ultimately ease off unless we discover the elixir of immortality. Thus, we forecast that world population will peak around 2055 at 8.7bn and will then decline to 8.0bn by 2100 . "
- "Based on the life-cycle hypothesis, we would expect older societies to typically have a large share of households that are creditors, and to be less sensitive to interest rate changes, while younger societies would typically have a larger share of debtors with higher sensitivities to monetary policy," wrote IMF economist Patrick Iman in a paper titled "Shock from Graying: Is the Demographic Shift Weakening Monetary Policy Effectiveness."
- Don't Miss: 22 Stunning Side-By-Side Images That Demonstrate China's Huge Wealth Gap »
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