SCOREBOARD: Steady nerves

Markets around the globe managed to hold on to recent gains, despite deteriorating data out of Europe.

We didn’t see a great deal of action last night, but then again there wasn’t great deal of news and of course volumes are low. Equities were flattish, either side of zero around the globe with US markets up 0.06 per cent ( 0.2 per cent to -0.3 per cent range) on the S&P500 (1402), down 0.01 per cent on the Dow (13167) and off 0.2 per cent on the Nasdaq (3010). Europe had a similar end and the Dax was down -0.03 per cent, the CaC -0.4 per cent and FTSE 0.08 per cent.

At the very least we can say that gains over previous session have held steady, which is impressive given some of the data flow we’ve seen. Especially out of Europe. Most of the news flow that I can see concerns this deterioration in European data we’ve seen of late. It has deteriorated, there’s no doubting that, and given the way the Europeans have handled the crisis, that was the only reasonable expectation. That said, most forecasters still only predict a modest contraction this year and I think that’s about right at this stage. The beauty of that for the rest of us, is that a modest contraction will have no noticeable impact on global growth, given the European contribution to this growth is comparatively small (and has been for a long time). It's effectively meaningless in the absence of a large slump in activity.

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