The market moves for reasons that are not always justified by the economic data, as seen in last week's risk sell-off. The market correction seemed to be driven by a re-assessment of the global growth outlook. And the sharp fall in the oil price was taken as a sign of slowing global growth. Recent economic data does not seem to support such an abrupt correction; it is likely that unwinding of speculative positions might have played a bigger role in the drop in both oil prices and the financial markets.
About the authors
Economist Insights is written by Joshua McCallum and Gianluca Moretti. Joshua has been working at Global Asset Management with the title of Senior Fixed Income Economist since 2005. Prior to this, he worked at the UK Treasury as a macroeconomist. Gianluca joined Global Asset Management in 2010. Prior to this he worked at the Italian central bank.
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