24th May 2011
The Guardian reports that world stock markets closed down on Monday night, the FTSE closed 1.9% lower with Dow Jones off 1% as policymakers row over the Greek debt crisis and new fears emerge over global economic growth
Among other worrying numbers, as Citywire reports here, the figure for Germany was down from 59.2 by 56.4. The website quotes Capital Economics Ben May as saying:
"With the export orders index dropping sharply, there are signs the strong euro is having could be having an adverse effect on the Eurozone's economy…this, coupled with the intensifying fiscal squeeze, suggest that growth may slow to a snail's pace before too long."
However not all analysts as as concerned. Chris Williamson chief economist of Markit, the research firm which conducts the PMI research, said: "While the rate of growth has slowed, it still remained strong. As the PMI had accurately predicted the strong 0.8% gross domestic product growth seen in the euro area in the first quarter, the survey data for the past two months are therefore very reassuring as they suggest that growth is likely to have slowed only very modestly in the second quarter, with GDP rising by perhaps 0.7%."
But the news combined with a slowdown in China, the continuing European debt saga, and fears about the end of quantitative easing in the US, prompted one US site 15 minutes of fame to ask if the investing cliché about selling in May not the best strategy for investors.
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