MARKET UPDATE: G3 Economies Show Modest Growth

 A few themes are already becoming evident into 2010. Firstly, the dominance of China and any news on the Chinese economy is becoming increasingly apparent, as reflected in the market reaction to trade data and hike in reserve requirements this week (see our post, China Tightens Monetary Policy)
 The second theme that is developing this year is the “risk on” environment for asset markets
 Another theme is the problems and concerns about sovereign debt and ratings, which will likely intensify further
 A final theme that could be added is the underperformance of the Eurozone economy, a theme that is likely to become more apparent as the year progresses
 Not to forget the US, their economy is showing more signs of life but even so, the improvements are “modest” as reflected in the Fed’s Beige Book

To view the full discussion, please click here to visit the original post on The Econometer website