Equities have shown remarkable resilience of late following a string of weak economic data from the US and China which was shrugged off. Alas, the weak China GDP seems to have been the tipping point and enthusiasm for the global recovery seems to have been severely dented.
European indices fared slightly better yesterday by only declining 0.40%-0.60% compared to around 2% in the US and 1%-2% seen in Asia. However, further overnight declines in commodities are set to drag miners and energy firms lower again, and Germany, the supporting pillar which props up the rest of the Euro Zone, is expected to see a significant decline in the ZEW Economic Sentiment Survey today which may be a amplified in the current environment.
