Still no big new trends standing out. Here's some analysis from...

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    Still no big new trends standing out. Here's some analysis from AMP Capital this week. Interesting that they say India's share market is already factoring in the good times there, whereas others say that India's share market has more in it.

    USA: US data was a bit messy but consistent with reasonable growth and continuing low inflation. May retail sales were soft but this was countered by an upwards revision to already solid April sales and in any case the New York & Philadelphia Fed manufacturing conditions surveys were strong in June, small business optimism remains very high, home builder conditions remain strong and unemployment claims remain around their lowest since the early 1970s. Against this core CPI inflation was weaker than expected in May at 1.7 per cent year on year. The US economy continues to look good but the lack of inflation pressure means the Fed can afford to remain gradual.

    JAPAN: The Bank of Japan remained on autopilot as expected as it has committed to continuing quantitative easing and targeting a zero 10-year bond yield until inflation exceeds 2 per cent.

    CHINA: Chinese activity data and credit growth for May points to growth holding up. While fixed asset investment slowed a touch growth in retail sales and industrial production was unchanged. While money supply growth slowed owing to a slower shadow bank and mortgage lending overall credit growth edged up slightly to 14.7 per cent year on year. The overall picture is that Chinese growth has slowed after the acceleration seen earlier this year but that it remains solid at around 6.5 per cent.

    INDIA: India saw a nice combination of stronger than expected industrial production in April and weaker than expected inflation. It remains a bright spot in the emerging world, although its share market valuations already reflect that.
    Last edited by LeeKing: 18/06/17
 
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