Mild Depression: Storm coming? – SocGen

By FXStreet Kit Juckes, Research Analyst at Societe Generale, suggests that there is a mild depression to start the week as witnessed by the recent economic releases and forthcoming events.

Key Quotes

“China’s growth spurt has run out of steam, replaced by something more like a trundle; Saudi Arabia’s credit rating was cut to A1 from Aa3 as the country’s finances struggle under low oil prices; and the UK economy too is losing momentum – partly but not only because of the uncertainty caused by next month’s EU referendum.

We go on to this week with equities – and risk sentiment generally – losing its “mojo” despite super-low bond yields. Inflation data are du i the US and UK, RBA and FOMC Minutes are out, and we’ll get US housing data and Australian jobs figures too. It’s the sogginess of risk sentiment that concerns me, and it’s that which is fed by the worries that China is slowing (again) that slightly better oil prices aren’t the same thing as a broader EM-enhancing commodity rally.

Not to mention the fears about growth that we see on both sides of the Atlantic. The UK press devoted column miles rather than column inches to the argument about …read more

Source:: FX Street