Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Loading...
Chart Of The DayMost Recent Stories

GOLDMAN’S GLOBAL LEADING INDEX REMAINS HIGH, BUT TRENDING LOWER

Goldman’s Global Leading Indicator has continued to decline since we last highlighted it, however, their economists are not overly concerned about the decline.  At this point, they appear to be singing a similar tune to the ECRI – growth is on the decline, however, there is not yet a persistent sign that economic weakness will lead to full blown recession:

“So far, while our proprietary global leading indicator, the GLI, saw its peak headline back in the Spring, its level remains high. Moreover, and symptomatic of the world we are facing, despite the significant US disappointments in August, the world has seemingly fared better.”

Although the United States has shown worrisome signs in recent months Goldman believes the strength in other parts of the world will be enough to help thwart a double dip:

“In China, we expect further evidence of softening GDP growth but, in contrast to the US, this slowdown has been deliberately induced by tightening financial conditions. The evidence in recent weeks suggests that Beijing is moving to reverse these steps now that they have brought inflationary pressures under control. We forecast renewed strength in Chinese GDP growth in 2011, led by domestic demand.

Against a background of reasonable valuations and rather high equity risk premia, we think that once markets realise that the US is not likely to enter a full-blown recession and that China is going to strengthen, equity markets and risky assets in general will rally.”

Source: Goldman Sachs

Comments are closed.