German Domestic Demand Powers Q2 Growth (Reuters)
German domestic purchases in the second quarter were the strongest in a year, lending credence to the idea that Europe’s clawing its way out of its 18-month recession. Germany’s second quarter expansion of .7 percent in gross domestic product was fueled by new construction after a brutal winter, business’ appetite for machinery and stronger individual consumption. And this across-the-board growth has analysts’ attention. Economist Holger Sandte of Nordea remarked, “The composition of the growth is very good. It is being driven more strongly from within, which is good for Germany and the euro zone.” It will be up to individual investors like you as to whether the world buys the European Union’s comeback in the third quarter.
American Dream Slipping into Nightmare (The Daily Ticker)
A report out yesterday from Sentier Research found that the median annual income of American households is slipping away like grains of sand through an hourglass. This past June, median annual income was found to be $52,100, down 4.4 percent from December 2009, 6.1 percent from December 2007 and 7.2 percent from January 2000. Unfortunately, the solution to sliding incomes could be even worse than the problem, according to The Daily Ticker’s Henry Blodget, since it likely will be “solved by government, probably through taxation.” As an investor, it’s hard to see how the government taking more of our investable funds will ultimately increase our income, but then, that’s part of the whole nightmare scenario.
East Asian Markets Mixed after Fed’s Whiff on Tapering Start Date (Bloomberg)
After a resounding “no decision” on the actual start date for the Fed’s tapering of its stimulus program, trading seems to be returning to normal (read: mixed) in East Asia. Japan’s Nikkei 225 and Tokyo Stock Exchange Index ended the session up 2.21 and 1.97 percent, respectively. Conversely, Hong Kong’s Hang Seng ended today down .15 percent, Shanghai’s Composite Index fell .47 percent and Shenzhen’s Composite Exchange lost .17 percent. And with the rout of emerging markets seemingly losing momentum, it appears investors could be in for a better week starting Monday.