August was a feel good month for markets with growing prospects of bond purchases from the European Central Bank and hopes for further quantitative easing from the US Federal Reserve enticing investors. But if there was a sense of hollow joy it was probably because the economic data wasn’t particularly inspiring, most notably in Europe and China. The worsening data in Europe, though not surprising, is concerning, while the lack of a pickup in China has caused some to ponder the expectations of a second half rebound. Despite those issues, the US has put in mixed results as it continues to muddle through with subdued but positive growth.
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