Growing imbalances in the US stock market

Growing imbalances in the US stock market

Posted on May 10, 2015
Despite the US stock markets continue to break record highs, we see big imbalances in the background. Bank of America Merrill Lynch published a new survey that shows US investors have pulled 99 billion USD out of the equities year-to-date including net outflows in 11 of the past 12 weeks. What’s more, we saw the biggest outflows from equity in amount of 17,2 billion USD this year.

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Is Europe waking up from long sleep?

Is Europe waking up from long sleep?

Posted on May 03, 2015
It seems that markets and investors start to believe in growing European economy, even stronger for longer-term. Lending by euro-area banks to companies and households rose for the first time in three years in a sign that record monetary stimulus is finally reaching the economy, according to the Bloomberg.

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China lets state firms default

China lets state firms default

Posted on April 25, 2015
Chinese Baoding Baobian Tianwei Electric Co Ltd failed to pay the $13.8 million of bond interest due 21 April, which means that the state-owned company might go bankrupt. This is without precedent in China.

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A Wake-Up Call for the United States?

A Wake-Up Call for the United States?

Posted on April 11, 2015
Larry Summers’, former Secretary of the Treasury, critic on the United States behaviour is harsh but sounds about right: the US ignored and failed to respond to China’s growing role. As a result, this new Chinese initiative can now break the United States’ dominance.

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In the Shadow of the US Dollar: New Scenarios

Posted on March 22, 2015
We got almost what we had expected from Federal Reserve’s policy meeting on 18th March even though the leaders of FED refrained from raising interest rates in the future. No wonder, as during these past month significant changes has happened in the macro economy. US dollar index has strengthened by 25 per cent since 2014 first semester. This is a huge difference. In addition, if this dollar strengthening trend continues it can seriously affect other economic regions’ chances for the next years.

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