China, US news boosts world markets, Aussie dollar climbs and UK economy warming up

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China’s manufacturing figures are the big news with the effects being felt across the World... Australia in particular is set to gain from both currency rises and inward investment... good news too for the US, Europe and UK economies... 

Shares Rise With Good News China and USA
Major markets largely reacted well to news from both China and the US on Thursday. The HSBC Flash China Manufacturing Purchasing Managers' Index moved up to a five-month high of 49.7% while the US Federal Reserve is winding down its stimulus measures with the US economy much stronger, and the bank is also looking at how to manage an interest rate rise in the next year. Read the full story.
 
China Manufacturing Growth Boosts Australian Dollar
The Australian dollar has reversed loses on Thursday following the news from China. The increase in the Australian dollar is despite a drop in the price of one of the country’s biggest exports, iron ore, which has seen a 25% downturn in 2014 so far. Read the full story.
 
China To Own A Quarter Of The World’s Shares
Australia’s Treasury chief, Dr Martin Parkinson, says China could own 25% of the value of the world’s shares within a decade, adding that Australia is well placed to benefit. China’s foreign currency reserves now sit at almost $4 trillion but this is set to grow and Dr Parkinson says that Asia as a whole is primed to own half of the world’s assets by 2030. With Australia already the seventh largest merchandise trading partner of China and with major Chinese investment set to grow, the country should reap the benefits of the superpower’s growth. Read the full story.
 
Boost for US Stocks Following Good News On Manufacturing
With new data on manufacturing showing growth and housing resale figures also proving good news the Standard & Poor 500 Index almost hit a record high by US lunchtime on Thursday. Increasing optimistic views of the global economy helped along with the real estate market seeing its first growth in resales for four months, together with a slow-down in price increases. Read the full story.
 
Continuing Eurozone Growth
Figures from the Purchasing Managers Index shows that business activity in the Eurozone this month is slightly down on April (53.9% compared to 54%) but as any figure above 50 indicates growth, the economic region is doing well. There are concerns, though, that while most of the countries in the Eurozone grow – Germany in particular – France performed less well, sliding below the 50% marker. Read the full story.

UK Economy Growing Faster Than Predicted
The UK’s economy grew at a faster pace in the first quarter of the year, with consumer confidence and business investment both improving. Figures from the Office of National Statistics show a year on year growth in GDP of 3.1% and overall the numbers suggest the UK is heading towards a more balanced recovery, although public spending and the deficit are still higher than analysts would like to see. Read the full story.
 
Southeast Asian Infrastructure Crisis?
Private investment in infrastructure in the five biggest southeast Asian countries has not recovered for over 20 years, according to an Asian development bank. While the total investment in infrastructure from the private sector in 1997 was $38 billion in 2010 it was down to $25 billion, although it is slowly climbing. The report says that regulation is often the cause of stifled investment and governments in the region need to do more to make it attractive for investors to take the associated risks. Read the full story.

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