Despite a twinge of hope from the improved retail sales in the United States in July, global stocks took a tumble as gloomy news from Europe and China offset the faint optimism emanating from the west.
Tuesday’s US government figures confirmed an upward surge in spending at stores in July, up 0.8 percent over June’s sales, bringing a fleeting hope of better days to come as news of recession in Europe and slowing growth in China left investors dismayed over the world economic condition overall.
Even the increased spending in the US in July is not really enough good news to get analysts to smile, less good news from US inventories shows stagnation; a sign that business is still worried about the future. Add this sober mood to the news from Europe and China, and you have a falling world stock market.
"China's economy is slowing down, this is a concern," said Dickie Wong, executive director for research at Kingston Securities Ltd In Hong Kong. "But it gives more room for the central bank of China to act and to do something to ease monetary policy."
Sorry, comments are closed for this post.