Japanese Prime Minister Shinzo Abe’s planned tax increase for April 2014 could cause a minor bump in the country’s road to recovery, but the decision has removed any uncertainty overshadowing markets, according to regional experts.
Economists and strategists see little impact from the US government shutdown in the short-term, but believe it could have a significant impact on the economy and stock market if a resolution is not found swiftly.
Fitch Ratings has cut its growth forecasts for all four BRIC economies but said emerging markets would continue to outperform the developed world for at least the next two years.
The Federal Reserve’s about turn on its plans to taper quantitative easing disappointed market commentators and cast further doubt over trust levels in the authority.
The consumer price index measure of inflation in the UK dipped to 2.7% in August from 2.8% a month earlier, sparking a variety of predictions on whether it will continue to trend towards its 2% target.
Vincent Devlin, fund manager on the BlackRock Greater Europe Trust, says that while there are tentative signs of a pick-up in Eurozone economic momentum, credit conditions are still poor and the financial transmission mechanism still stressed.
Old Mutual Global Investors’ Richard Buxton believes UK equities are in a new bull phase, forecasting the FTSE 100 could reach 7,300 points in 2014.
The British Chambers of Commerce (BCC) has revised its UK growth rate to 1.3% for the year, up from an earlier estimate of 0.9%, praising the consistent confidence of businesses in the face of “unwarranted pessimism over the economy”.
F&C’s Ted Scott is still cautious over the rate of the eurozone’s recovery despite improving economic data relating to the region.
Bank of England governor Mark Carney has fleshed out his monetary policy plans, reiterating the forward guidance of the last Monetary Policy Meeting but refusing to take the potential for further stimulus off the table.
The shift in Chinese authorities' political rhetoric from a hawkish position to one of a more dove-like tone indicates potential for more pro-growth measures in the latter part of the year, according to Henderson's Charlie Awdry.
UK economic growth in Q2 has been revised upwards to 0.7% from a first estimate of 0.6%, prompting commentators to ask whether Bank of England governor Mark Carney’s monetary policy will be affected.
