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Global economic recovery still led by U.S. – report

Global economic recovery still led by U.S. – report
The global economic recovery continues to be led by the US as GDP data for the third quarter of 2014 remained largely above market expectations, according to a report by Al-Rajhi Capital.
Although the third quarter GDP growth was slow as compared to the growth witnessed in the spring quarter, unemployment data, ISM indices and other indicators were better than what they were a month earlier.
Economic indicators showed some moderation in China, whereas they improved marginally in Europe.
Major central banks such as the US Fed, ECB, BoE, and BoJ stayed put as they left policy rates unchanged with the ECB and the BoJ expanding their asset purchase programs in an effort to boost growth and stoke inflation.
Strong economic data in the US pushed the US 10-year yield above 2.3%, whereas the 10-year yield is hovering close to its two-year low in Germany.
The interbank rates such as USD Libor, GBP Libor, Saibor (KSA) and Eibor (UAE) largely remained stable.
Crude prices tumbled to a four-year low due to a surge in shale drilling that has lifted US production to a three-decade high as well as slowing growth in global demand.
Gold prices fell to its lowest in nearly five years attributed to a strong dollar, subdued inflationary expectations and expectation that the Fed would raise key interest rates amid an improving economic outlook in the US.