The slowing of Chinese growth and the rout in commodity currencies

Today’s commentary
I am less and less concerned about the eurozone periphery over the medium term because recovery in Europe looks poised to last. On the other hand, the slowdown in China could have wide-ranging consequences, particularly for countries dependent on commodities for growth. The currencies of commodity producers are declining, making interest rate policy trickier as their economies slow.
Let me start off with the good news here - and that’s in Europe. Spain, the market’s new darling is on the mend in various ways.

In 2012 Spain's 10-year yielded near 8%. Today Spain issued largest euro sovereign issue ever http://t.co/RmwHIxm8tA pic.twitter.com/QMSN1oDyDO
— Edward Harrison (@edwardnh) January 22, 2014

Marc Chandler notes that there were 400-odd bidders for this deal ...


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