Why markets ignore good news from U

Oct 16 (Reuters) What spooking the markets?

One thing we can say buy canada goose jacket for sure is that it is not the slightly weaker than expected retail sales that triggered the mayhem on Wall Street on Wednesday morning. economic data have actually been quite strong in the month since Wall Street peaked on Sept. 19.

So to find an Canada Goose Parka economic rationale for the biggest stock market decline since 2011, we have to consider two canada goose other explanations. shale oil. Falling oil prices are generally beneficial for the world economy and for canada goose coats most businesses outside the energy sector. But investors now fleeing from natural resource stocks will take time to https://www.expeditionparkaoutlets.ca recycle their money into other industries, such as airlines, retailers and auto manufacturers. Until this rotation happens, broad stock market indices are dragged down by the plunging oil shares, a process visible almost every day in the past two weeks, especially in the last hour of trading.

If falling oil prices were the main causes of the market setback, it would not be a big problem. There is, however, a far more worrying explanation: Europe. Not just the obvious weakness of the European economy, but the inability or unwillingness of European Union policymakers to agree on a sensible response.

Europe economic weakness was already evident several Canada Goose online months ago when the buy canada goose jacket cheap Ukrainian crisis and Russian canada goose clearance sale sanctions broke the momentum of German industrial growth, which had 2018 canada goose outlet been a rare bright spot in the continent economic outlook. economy out of several patches in the past five years. stock markets were able to keep hitting new records in the summer, despite bad news from Europe. economy was doing all right. economic statistics and Federal Reserve policy than by anything happening in Greece, Italy or the European Central Bank.

In the past few weeks, however, Canada Goose Jackets bad news from Europe seems suddenly to be having far more impact than the generally positive news canada goose coats on sale from the United States, where economic canada goose black friday sale growth is accelerating and expectations of interest rate hikes have been pushed back from next spring to September or beyond. monetary and fiscal policy. economy today would eventually cheap Canada Goose spread canada goose clearance to the rest of the world. economy seemed to be moving toward a sustainable expansion, it seemed reasonable to suppose that the rest of the world would follow, with a lag canada goose outlet toronto factory of a year or two. growth suffered an unexpected setback as it did last winter and in the summers of Canada Goose Coats On Sale 2011 and 2012 investors and businesses would turn pessimistic around the world. growth scares turned Canada Goose Online out to be just a temporary aberration, bullish sentiment returned. economy, other governments and central banks would eventually follow similar policies and achieve similar results.

Now it appears that this linkage may have Canada Goose Outlet broken. The European Central Bank bitterly disappointed investors who had expected the bank to follow the Federal Reserve example and announce dramatic monetary measures, combined with a canada goose outlet store locations convincing recapitalization of the European banking system, at European Central Bank President Mario Draghi press conference on Oct. 2.

The rout in global stock markets began the day after. Meanwhile, the German government canada goose outlet sale has continued to demand immediate spending cuts from France and Italy while hobbling German industries with Russian sanctions despite the evidence that both its European austerity drive and diplomatic policies were economically damaging and counterproductive. roadmap for economic recovery. economy can no longer be treated as a leading indicator of European recovery.

With this, the prospects for the global Canada Goose sale economy would be much diminished. While the chances of a renewed financial crisis in the euro zone are greatly increased.

The answer should soon be clear. The European canada goose store Commission will publish its review of the French and Italian budgets on Oct. 29, Ukraine election on Oct. 26 will provide an opportunity to start dismantling the self destructive sanctions and canadian goose jacket on Nov. canada goose deals 6 the European Central Bank will hold its next policy canada goose replica meeting.

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