Other Markets

In The United Kingdom the inflation exceeds expectations and in China the yuan is weakened after maxima of last week

 

The weakness that still shows the pound sterling (is had depreciado about 11 % in effective terms from the referendum) continues pressuring with an upward trend consumer prices: the inflation recovered three tenth in July until 2.9 %, well above of the objective of the 2.0 %, which it does more probable than the BoE goes up types before which was expected. Furthermore, the labour market still shows a high dynamism, with an unemployment rate that it went down until 4.3 % in July, between the minimum ones from 1975.

The central bank of China starts to show uncomfortable because of the strength of the yuan (7.0 % when dealing with the dollar in which we take of year) and it has given reverse gear to some controls of capitals put in motion between 2015 and 2016 to slow down the weakness of the currency (se depreció about 6.6 % in 2016). The loss of accumulated competitiveness throughout this year is already observed in the data of external trade (the commercial surplus about 12 % has been reduced from January) and indicators of activity (industrial production, fixed investment and retail sales) disappointed in a generalised way in August, confirming the gradual cooling of the economy in the second middle of the year.

Source: Bankia Studies