FXStreet (Guatemala) – Analysts at Rabobank explained that with Chinese growth slowing down, how are the other major economies doing?
Key Quotes:
“The German Ifo provided some good news. The Business Climate Index rose to 108.3 in August, up 0.3 pts from the previous month, while the market was set for a small fall. The sub-index for the current situation rose 0.9 pts to 114.8, the highest level since April 2014, whereas the expectations saw a 0.1 pt drop to 102.2.”
“This was broadly in line with the increase in the flash composite PMI of last Friday and suggests that the German real economy has, so far, shrugged off the problems in China.”
“Even though Germany is the largest euro area-exporter to China, the domestically added value of this equals ‘only’ 2 to 3% of GDP. However, we should also note that the survey was conducted before the euro strengthened significantly against most of Germany’s trading partners. In that sense, we’ll have to wait until next month to get a better clue of how the recent turbulence is affecting German sentiment.”
(Market News Provided by FXstreet)