Since the election, it has been popular to talk about global reflation taking place. Many look at the price of stocks, Copper and Steel and feel the rise in prices, means global growth and reflation is taking place.
Below looks at the price of US Steel over the past few years and the message it could be sending to the reflation theme of late-
The Bank of Canada kept its benchmark overnight interest rate on hold at 0.5%, as expected, noting that the "current stance of monetary policy is still appropriate" and adding that the “global economic growth is strengthening and becoming more broadly-based”.
While observing that the global economic situation had brightened since January and acknowledged "the strength of recent data", it cautioned that “there is still considerable uncertainty about the outlook”. It also said that “material slack remains” in the Canadian labor market.
Authored by Charles Hugh-Smith via OfTwoMinds blog,
Where's the growth going to come from as the dominant generation makes less, borrows less, spends less, saves more and turns away from long commutes, malls and suburban living and abandons the worship of private vehicles?
S&P futures are unchanged and Asian stocks closed mixed, however European stocks rebounded for first time this week, led by auto stocks after Daimler’s quarterly profit, as a break in alarming political news prompted traders to "swoop" - as Reuters puts it - on equities, cooling a safe-haven rally that saw the yen and gold at five-month highs and global government bond yields to drop their lowest this year.