IMF seconds last week’s World Bank report in lowering forecasts on U.S. growth for 2014

if you can pry yourself away from all the speculation on sectarian chaos in the Middle East, today’s data poses quite a puzzle on its own. Looking backward, numbers released today say the U.S. economy is in better shape that expected. Looking forward, the International Monetary Fund followed up on the World Bank reduction in its forecasts of growth for 2014 with a cut to its own projection for 2014 U.S. growth

Yes, there is negative news but I think today’s weakness is just the reaction to an overbought market

If you must have a news event to explain today’s weakness in U.S. stocks, I suppose the downgrade in global economic growth projections from the World Bank will do. Add a bit of worry that the primary defeat of House Majority Leader Eric Cantor (R.-Va.) will make future negotiations over raising the U.S. debt ceiling even more contentious and you’ve got “reasons” for today’s weakness

Another reserve ratio cut from the People’s Bank leads China’s markets higher

Another reserve ratio cut from the People’s Bank leads China’s markets higher

China’s financial markets today reacted to yesterday’s (June 9) good news while ignoring today’s threatening rumbles. The People’s Bank of China announced another 0.5 percentage point cut in reserve requirements for regional and rural banks. The cuts will take effect on June 16 and will add an estimated 70 billion yuan ($11.2 billion) in liquidity to the financial system.