May 6, 2016 | Investment Advice

International News (Issue 398) – 6 May 2016

International News – 6 May 2016

Being the first week of the month, we had the usual slew of economic data released across the world.

In the US, manufacturing activity continued its slow growth, but services improved there.

Oddly, the employment gains seen in recent months looks set to come in under recent numbers, and consumer confidence also took a fall in April, so perhaps there is reason to monitor near term summer consumption trends in the US.

In China, manufacturing in April failed to improve in spite of evidence to the contrary in steel and related markets.

We continue to feel uneasy about the recent surge higher in Chinese fixed asset infrastructure, and worry that once again it is highly concentrated amongst state-owned enterprises and not having the requisite knock-on effects to the private sector.

Furthermore, recent easy money in China has led to renewed speculation in commodity futures markets (as discussed here recently) and in housing, much of which we find difficult to justify.

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