Concerns included Europe’s flagging economy, a jump in U.S. labor costs and Argentina’s default. Euro zone inflation fell more than expected in July and sparked renewed fears about deflation. Adding to the negative sentiment was a sharp sell-off in shares of Portuguese bank Banco Espirito Santo after the lender reported a $ 4.8 billion loss. Meanwhile, the U.S. Employment Cost index (ECI) rose the most in more than five years in the second quarter, and, in Argentina, the economy minister said his country is not in default and is open to more negotiating.
SEOUL (Reuters) – South Korean voters in 15 districts gave President Park Geun-hye’s ruling party an enhanced parliamentary majority in by-elections on Wednesday, and the political momentum to drive an economic stimulus program and regulatory reforms.
What a relief. The deep economic contraction earlier this year was temporary after all.
New data released Wednesday show the U.S. economy bounced back in the spring, growing at a 4% annual pace in the second quarter. That was even better than the forecast of 3% growth, according to a consensus of economists surveyed by CNNMoney.
Dublin (AFP) – Ireland is moving closer to a switch away from deep austerity measures as it prepares for a key budget — the first since the eurozone nation emerged from a massive international bailout.
Is China’s economy, the second largest in the world, a disaster coming down to a hard landing, which has been the popular forecast for four or five years now? Or is it merely slowing from unsustainable double-digit growth of more than 12% a few years ago, to a more reasonable and sustainable pace?
Brasilia (Brazil) (AFP) – Brazil’s central bank said Friday it would ease banks’ reserve requirements, freeing up $ 13 billion to stimulate lending and boost an economy facing its fourth year of sluggish growth.
ACCRA (Reuters) – More than 2,000 Ghanaians took to the streets of the capital Accra on Thursday as part of planned nationwide protests against what they say is the government’s mishandling of the economy.
Luxembourg (AFP) – The main shareholder of troubled Banco Espirito Santo (BES) was placed in receivership on Tuesday as Portugal’s largest listed lender announced it has sold off the bulk of its Swiss-based private bank.
SYDNEY (Reuters) – The jury is out on whether the exceptional monetary polices pursued worldwide have worked to stimulate activity in the real economy, rather than just encouraging risk-taking in financial markets, Australia’s central bank chief on Tuesday.
Ready for some good news out of Europe for a change?
This could be the week where we finally get confirmation that the U.K. economy has returned to where it was before the financial crisis. The first reading on second-quarter GDP is out on Friday and is expected to paint a healthy picture of the country’s economy.
Investing.com – Investing.com – Gold futures fell on Tuesday after Federal Reserve Chair Janet Yellen delivered an reasonably upbeat take on the U.S. economy before Congress earlier, with concerns that momentum stocks have grown a bit frothy bolstering the dollar, which trades inversely with gold
WASHINGTON (Reuters) – A strengthening U.S. economy and job market means the Federal Reserve should begin raising interest rates “relatively soon,” Kansas City Federal Reserve Bank President Esther George said on Tuesday.