Could the US rescue European stock markets?
As we await the release of US job data for the month of May many experts believe that the US economy could provide significant support to European stock markets. The recent release of US construction data is a prime example of how recovery in the US economy can and will influence the worldwide economy but an awful lot seems to be hinging upon the US at the moment.
The initial stages of recovery in the US economy were dominated by volatile periods during which economic data appeared to give different indications for the future. However, it now seems as though the US economy is on track and we may well see further positive economic news in the short to medium term. Quite what impact this will have on European markets in the medium term remains to be seen because there are issues which need to be addressed by the European Union and the ECB, sooner rather than later.
It is becoming more and more evident that the US economy will be the cornerstone of the eventual recovery in the worldwide economy. However, the US will need assistance from the likes of the Far East and Europe to put in place a firm base for the future. Whether this is likely in the short to medium term remains to be seen as issues specific to the Far East and to Europe are becoming more evident.
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