The figure plots the evolution of average import tariffs and the average imports-to-GDP ratio from the year before the tariff increase (year –1) through the following 5 years.

Source: FED St. Louis

Comments

German ZEW 

German investor confidence edged up this month though there’s little optimism about a strong pickup from the current slowdown

ZEW President Achim Wambach said survey participants “don’t expect to see a speedy recovery of the currently weak development of the economy”

Japanese PIL 

Japan’s economy was bound to take a hit from a string of natural disasters that disrupted production in 3Q, as the GDP data bore out. The good news is that the effects will pass, and a rebound in 4Q is likely

The negatives in the data were discouraging, but not alarming. Business investment declined, breaking a seven-quarter expansion. Consumption retreated marginally. Exports also fell. But consider the positives. Reconstruction-related demand will provide a boost going forward. A decline in inventories has probably set up production for a rebound

Chinese Industrial Production

China’s economy showed tentative signs of stabilization in October with infrastructure investment and industrial production picking up, even as weak retail sales underscored strong downward pressure on output

Those readings signal that government stimulus aimed at spurring infrastructure investment is finally passing through into the real economy. Leading drivers of the rebound were investment in environmental protection and cleanup, and road transportation projects, which quickened noticeably in October

source: Bloomberg

Reactions

Indicies and Equity Sectors

The information provided has been compiled with the utmost care. WMM does not provide any guarantee (including resposability to third parties) regarding the accuracy, updating, reliability and completeness of the published contents. Furthermore, the published content does not constitute a solicitation or an offer to use the services of WMM, nor does it constitute any form of advice