Short DAX at 7740
- Thread starter ASusilovic
- Start date
You want to be short after these impressive PMI numbers ?
Quote from younouss:
long mood today i guess
Did you double your position after break of 5325.00 ?
Give Berlin its due. Germanyâs stimulus measures, once derided as puny, have delivered a bigger bang for the buck than anyone expected. Germany and France, partly helped by its neighbourâs stimulus, exited recession in the second quarter. Both countriesâ 0.3 per cent quarter-on-quarter growth yanked up the eurozone as a whole to a mere 0.1 per cent contraction. Coupled with Wednesdayâs message from the Fed that the US economy may be levelling out, the impression that the worst is over is solidifying.
Yet it is still too early to say more than that. The eurozone recovery could yet peter out, or prove sickly. With continuing weakness in Italy and Spain, a return to growth in the 16-nation bloc will rely on France and Germany. Pitfalls are looming. Germanyâs car scrappage scheme proved remarkably successful at getting usually frugal citizens to splash out: the 40 per cent rise in second-quarter car registrations boosted German consumption exactly when it was needed. About half of those cars were imported, many from France â and France benefited, too, from a slightly less generous cars scheme.
The impact of cash-for-clunkers will fade, however, as eligible, willing participants start to dwindle. The second main ingredient in Germanyâs support package â subsidies for companies putting workers on shorter hours â is approaching its sell-by date too. Bank of America estimates that the scheme has so far preserved up to 600,000 jobs. But companies are reaching the point where they can no longer afford to keep workers on, subsidies or not. Rising joblessness could badly dent consumption.
Germany will need a vigorous rebound in exports to offset that. Yet despite encouraging signs from Asia, the global demand outlook is fragile. Eurozone purchasing managersâ indices are rising, but still point to further contraction. Concerns remain, too, over German banksâ ability to support business investment. August, for once, delivered a pleasant surprise. But nasty ones could still lurk ahead.
http://www.ft.com/cms/s/3/d0618b6e-87d5-11de-82e4-00144feabdc0.html?nclick_check=1
Yet it is still too early to say more than that. The eurozone recovery could yet peter out, or prove sickly. With continuing weakness in Italy and Spain, a return to growth in the 16-nation bloc will rely on France and Germany. Pitfalls are looming. Germanyâs car scrappage scheme proved remarkably successful at getting usually frugal citizens to splash out: the 40 per cent rise in second-quarter car registrations boosted German consumption exactly when it was needed. About half of those cars were imported, many from France â and France benefited, too, from a slightly less generous cars scheme.
The impact of cash-for-clunkers will fade, however, as eligible, willing participants start to dwindle. The second main ingredient in Germanyâs support package â subsidies for companies putting workers on shorter hours â is approaching its sell-by date too. Bank of America estimates that the scheme has so far preserved up to 600,000 jobs. But companies are reaching the point where they can no longer afford to keep workers on, subsidies or not. Rising joblessness could badly dent consumption.
Germany will need a vigorous rebound in exports to offset that. Yet despite encouraging signs from Asia, the global demand outlook is fragile. Eurozone purchasing managersâ indices are rising, but still point to further contraction. Concerns remain, too, over German banksâ ability to support business investment. August, for once, delivered a pleasant surprise. But nasty ones could still lurk ahead.
http://www.ft.com/cms/s/3/d0618b6e-87d5-11de-82e4-00144feabdc0.html?nclick_check=1