It is a season of results of corporate earnings. The good earnings are pushing the stock prices upward. This in turn sustains economic recovery. But only earnings are not enough to push stock prices up.
Corporate earnings depend mainly on 3 factors, cost-cutting, investment in technology and steady rather increasing consumer spending. But none of these factors is strong enough to keep the prices at higher levels.
Corporate earnings depend mainly on 3 factors, cost-cutting, investment in technology and steady rather increasing consumer spending. But none of these factors is strong enough to keep the prices at higher levels.
US economy needs the labour market to improve. Employment data is improving.
China has just beaten Japan and became the world’s second largest economy after US. In coming years, China may get GDP that of US. In other words, China will influence global economy. Demand in China will make factories of other countries running. Chinese demand for semiconductors, computers, software are increasing and that benefits American companies like Intel and IBM.
Recently, China’s government’s steps to curb local real estate market pulled the steel and copper prices lower.
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