It’s the first day of the trading week for London, following an impressive closing ceremony for the Paralympic Games. Last week’s markets ended following a disappointing US NFP report on Friday and further weak macro data out of China at the weekend. Though this led to markets getting a slight lift as it increases the likelihood of further stimulus from both the US and China.
Spencer Dale of the Bank of England speaking at Trinity College Dublin over the weekend stated that he believes further quantitative easing (QE) could do more harm than good. His analogy of the UK economy and continuing to print money to stimulate the stagnating economy:
“If the handbrake on your car is stuck, putting your foot further and further down on the accelerator won't get you very far before the car starts to overheat”
In another example that China is opening up its currency to the free market a PBOC Official stated that the Yuan trading band may be widened – Market News International
Japan revises down GDP growth figures – WSJ
The UK Lloyds employment confidence rose to -43 in August, compared to the previous reading of -51 in July
The mega-merger of Xstrata and Glencore could finally be going ahead