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Balancing growth

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  • China rebalanced its delicate growth balancing act, with a mild stimulus. The measures were really about improved efficiency and the efficacy of fiscal policy, but in conjunction with Premier Li's remarks about a "floor" to growth they show a desire not to let growth go too low.
  • The UK has growth numbers today, but given that they come from the UK's Office of National Statistics and thus subject to repeated revisions, the market will not take them too seriously. Broadly we see the UK accelerating into 2014 on stronger consumption.
  • German ifo data on business sentiment is due in the wake of stronger purchasing manager data yesterday. Although sentiment data has been prone to overreact relative to the economy, Euro sentiment is less prone to overreact than Anglo-Saxon sentiment.
  • The US gives initial jobless claims and durable goods orders. With a large majority of economists expecting the Fed bond buying program to be scaled back at the September FOMC, ongoing health in the labour market is going to be critical

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