The markets have been choppy over the week. With fears of US recession still hanging strong and worries of possible Euro Debt concerns and fresh trouble in the Middle East the markets could face troubled times in the near future.
In Europe, Italy has assured investors that the country is planning to bring in as series of austerity measures that could ease the debt fears. The yield on the Italian bonds have jumped up by 5.4% amid wider turmoil, this despite purchases of the bonds by the European Central Bank. Buying bonds supports prices and can take pressure of cash-strapped governments amid a market selloff. Meanwhile, G7 chiefs have vowed to support banks and help the slowing economy gain some momentum. Germany moved towards insulating their banks from possible fallout amid the Greece crisis by assuring funds inflow into the system. French Finance Minister Francois Baroin said today the Group of Eight countries will increase to $38 billion aid for Egypt, Tunisia, Morocco and Jordan following political turmoil earlier this year.
In the UK the inflation has increased considerably over the month adding more worries to the consumers. The situation is expected to worsen in the coming months. Inflation is currently at 4.5pc.
China has provided some positive news for the markets. The country trade growth accelerated despite weakening global demand. Export growth for the world's second-largest economy grew to 24.5 percent from July's 20.4 percent, while imports surged to 30.2 percent, up from July's 22.9 percent. This growth has been primarily because the country has been able to find new trade avenues in the African continent and not focus only on European shores as high debt and unemployment has affected consumer confidence in the US and Europe.
