Thursday, October 22, 2009
Markets now addicted to ‘stimulus measures’ – where do we go from here? Dash for the exits?
Stocks fell from Tokyo to Paris and the dollar rose as the fastest economic growth in a year in China stoked speculation that government stimulus measures will be removed. â€œIt is clear that time is running out for the sweet spot,â€ Lee Hardman, a currency economist at Bank of Tokyo Mitsubishi UFJ Ltd. in London, wrote in an e-mailed note today. Following todayâ€™s GDP release in China, â€œmarket sentiment has been soured as the report has turned attention towards when the Chinese will begin to tighten policy,â€ he said.