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China 2Q GDP growth quickens

Published Wednesday, July 16th, 2014

Despite the best efforts of Britain’s David Cameron, Jean-Claude Juncker was yesterday confirmed as the next president of the European Commission after securing a comfortable majority in the European parliament. He takes over the leadership at a time when the economic recovery across the Eurozone is faltering and will be under pressure to pursue policies which foster growth and tackle the stubbornly high levels of unemployment across the region. The newly-elected leader had little time to celebrate after a gauge of German investor morale slipped to an 18-month low in July, its seventh-consecutive monthly decline.

Global stocks were at the mercy of Janet Yellen’s comments and they duly headed lower after she raised concerns over potential stretched valuations. Her testimony was otherwise typically dovish as she reaffirmed her view that significant slack remained in labour markets and did not alter expectations of a first rate increase in mid-2015. A modest rise in US retail sales in June and well-received earnings reports from JP Morgan and Goldman Sachs failed to offset the testimony-induced sell-off  as the S&P 500 settled 0.2% lower whilst the tech heavy Nasdaq suffered a fall of 0.5%. Hopes for a rebound in risk appetite now lie with China after it reported an uptick in the pace of 2Q economic growth, having expanded at a yearly rate of 7.5% compared to 7.4% recorded in 1Q.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.