Stocks rose again on Friday. Emerging markets led the way, with the MSCI Emerging Markets Index rising 1.4 percent. In the US, the S&P 500 rose 0.4 percent to close at a record high for the third consecutive day.
Stocks rose despite mixed economic data from the US on Friday. US manufacturing production rose 0.3 percent in October but total industrial production fell 0.1 percent and the Federal Reserve Bank of New York’s general economic index fell to minus 2.2 in November from 1.5 in October.
Market gains on Friday were partly attributed to news out of China.
China's ruling party issued a document on Friday detailing economic reforms that include requiring state firms to pay larger dividends to the government and allowing private companies a bigger role in the economy. It also announced an easing of the country's one-child policy.
The latter may have important long-term effects. As it is, China and many other Asian countries are set to see the percentage of the elderly in their populations “grow drastically” in the coming years, according to a CNBC report. This could create headwinds for the region's economies as governments have to spend more on the elderly even as the working age population shrinks.
No comments:
Post a Comment