Feb 26, 2016 | Investment Advice

International News (Issue 388) – 26 February 2016

International News – 26 February 2016

For me, the biggest feature this week was the deterioration in US economic growth through February.

Worse, it was the consumer side of the economy that seems to be slowing up – notably US consumer confidence and US service sector activity both deteriorated during the month. Service activity in February is back to a near 3-year low and confidence back to its lowest in over a year.

Brazil’s sovereign credit rating was cut to junk status this week by Moodys.

The decision by the UK government to hold a referendum into its ongoing membership of the European Union saw the British Pound tumble 3-4% and to approaching a record low against the US dollar.

This will be a big theme for markets over the winter.

Lastly, China announced it would open up its bond market to international investors, which is a step in the right direction and another protective fundamental step taken by authorities to defend further depreciation in the Renminbi.

China’s February trade data and its monthly foreign reserves will be the most closely watched of the Chinese economic data in the coming months and the next release is scheduled for the second week of March.

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