Federal Republic

What this week on the financial markets is currently 1 China’s economy shrinks new economic data from China indicate a renewed setback in the industry of the world’s second largest economy. The HSBC purchasing managers index dropped in April by 0.8 points to 49.6 counter as the big banks announced on Thursday in Beijing. Observers had expected that the value was still above the threshold of 50 points; a value below that psychologically important mark suggests a shrinking industrial sector. The unexpectedly bad data triggered worries about a still weaker demand in the oil markets for crude oil, what the price of a barrel Brent Crude fell 57 cents to 102,03 dollars. The price of copper on Thursday reported the largest one-day drop for three weeks. 2. Speculation about US monetary policy after emerged from the minutes of the last Fed meeting, several Governors of the Federal Reserve are already ready, at the next meeting in June about a throttle the bond purchases to speak. After the announcement of the message prices collapsed worldwide, investors in Asia, Europe and America took the gains of the last few weeks as a precaution.

Fed Chairman Bernank shows however committed to continuing ultra loose monetary policy for the time being. The Federal will buy so long reserve bonds and real estate securities on a large scale, as this is necessary for the substantial improvement of the labour market in the United States, Bernanke on Wednesday in Congress. 3. Recovery in Germany moved the ongoing crisis in the euro area remains the issue number one for the German economy, even though the Federal Republic has so far ripped in comparison to other countries very successfully against. But the ongoing crisis is still the biggest obstacle for the economy, because the weak demand from neighboring countries strained the export world champion. Most recently, the Federal Reserve had slashed its forecast for 2013; instead of 1.6 percent it is now by a meager 0.4 percent growth.