As good news goes, today’s announcement of first quarter GDP growth in the Euro Zone economies isn’t going to produce dancing in the streets. But good news has been hard to come by in Europe recently so even the smallest positive change is welcome.Â
The economies of the 16 countries that use the euro grew by 0.2% in the quarter from the fourth quarter of 2009. Economists surveyed by Bloomberg News had expected growth of just 0.1%
On a year-to-year basis GDP grew by 0.5% after falling at an annual rate of 2.2% in the fourth quarter.
You didn’t have to look very hard to discover the reason. A cheaper euro made exports less expensive for customers in non-euro countries. And that led to a 1.3% increase in industrial production in March after a 0.7% gain in February. The euro is down 11% against the U.S. dollar so far in 2010.
Unfortunately, growth wasn’t spread evenly across the euro economies.
Growth was strong in the center. In Germany GDP rose 0.2% from the fourth quarter. French GDP climbed 0.1% and Italy recorded 0.5% growth.Â
On the other hand, Greek GDP fell by 0.8% in the first quarter.
But other countries that have been the locus of worry about a wider crisis fell into the growth camp even if just barely. Spain showed 0.1% growth in the quarter from the fourth quarter of 2009. Portuguese GDP climbed by 1%.
Jim, what do you think about TDF for investing in the Chinese market?
DJ,
Keep in mind, when you buy a Chinese stock in the U.S., either OTC or on an exchange, you will not get any boost from what Chinese stocks do on Chinese exchanges. Over here, it really depends on what American investors think of the stocks.
Having said that, it is getting close to time to invest in Chinese stocks. 😉
yx,
I tend to look at Rogers and Roubini (as well as Marc Faber) when I need a long term view. None of them are very good at the short term view.
The problem with long term views is that a lot happens before you actually get there.
Regardless, they are outstanding with the “macro” view of the world’s economy.
Jim?
Time to buy Chinese markets???
China’s Bear Market Attracts Locals Seeking Safety (Update1)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aIBuZtg7nwSk&pos=3
If more and more Chinese start to feel this way, we may be looking at a bottom….
I for one am going to start looking on your watch list for Chinese bargin stocks……
I guarantee this is my last post on the subject.
Take look at what Jim Rogers and Roubini had to say about the EU’s “laggards”, if any of you thinks I may not be nice to some poor EUs. I am sure you all know that every time when Rogers and Roubini open their months, financial media reports it.
They are saying that if EU keeps taking in more “laggards”, Euro eventually will be either destroyed (by market’s lack of confidence) or dissolved by EU member themselves. Euro has to be the currency of countries with compatible economic level. That’s what I said.
http://www.bloomberg.com/apps/news?pid=20601010&sid=auuRue7wyMWM
We live not only in an interrelated world, but worse an interrelated market. The slightest whiff of trouble anywhere seems to tank the market and that means every stock in every market without exception; kind of like an elephant that reacts not only to the mouse under foot but to the mouse it senses 10 miles away. Makes a small investor wonder whether it’s really safe for him. But having said that I wanted to give Jim every credit for not bailing last Friday, and even recommending some buying. WHR, and CMI great calls. NMM… not so great, and RIG is looking bad — lucky I did not own it but who could see such a thing coming.