WORLD> Europe
|
WORLD> Europe
|
|
EU recovery takes time to take root
(Agencies)
Updated: 2009-06-23 22:28 The PMI data added to signs Europe's largest economy faces a bumpy recovery from record recession and overshadowed a report by German GfK market research group that consumer sentiment was poised to push up. Chris Williamson, chief economist at financial information company Markit, said the German PMI data highlighted concerns that recovery was going to be difficult. "We may see some plateauing and ... the economy still contracting as we move through the rest of the year," he said. Concerns about the health of the global economy snuffed out a rally attempt in European shares after US shares suffered their worst one-day loss in two months on Monday and Asian stocks tumbled. China Hopes The data in Europe came after Su Ning, a vice-governor of the People's Bank of China, said he hoped his country would be among the first economies to recover from the crisis.
But he cautioned that the pick-up was still not firmly anchored and expressed particular concern about the "grim" international environment for Chinese exporters as the financial crisis continues to take a toll on global growth. The US unemployment rate, at 9.4 percent already its highest in about 25 years, is likely to hit 10 percent in the next couple of months, a White House spokesman said on Monday. Figures on US housing data due later on Tuesday will be an important test for nervous markets, while the Federal Reserve's interest rate setting committee begins its two-day meeting. While no changes are expected in the short-term, with interest rates near zero, attention is focused on whether the Fed will expand its purchases of government debt from the $300 billion already pledged to fight the recession.
|
