Europe: Business Sentiment Growing

The global economic recovery remains fragment and uneven for now, as China is expected to grow above 8.0% in the coming months. In the Euro zone, some nations are reacting better than others, albeit unemployment might target higher levels in future.
Advertisement
Awaiting for China economics¡¦ tractionTangible signs of a global economic recovery, as well as the huge budget deficit in the United States, could weight on the U.S. dollar in the coming months. The International Monetary Fund (IMF) increased global growth prospective to 2.5% in 2010 from 2.00%, but expects the rebound to be bumpy and uneven. China should lead the way with growth reaching 8.5%, while in the United States the up move could be only 0.8%. Nonetheless, the magnitude of next rebound remains unclear. Current economic scenario, characterized by interest rates bottoming, was last seen only in 1947 and 1900. In effect, during the G8 meeting of last week, members talked about additional government intervention, as the global economy remains weak with some signs of stabilization. Germany, at the contrary, is concerned that spending will increase debt and run inflation. However, all members agreed that it is too early to remove the enormous fiscal stimulus package. Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.