Tuesday 1 July 2014

Global economic data mixed, China boosts banks' lending capacity

Economic data on Monday were mixed.

In Japan, factory output rose 0.5 percent in May after falling 2.8 percent in April.

However, German retail sales fell 0.6 percent in May following a 1.5 percent decline in April.

Eurozone inflation held steady at 0.5 percent in June.

Elsewhere in Europe, UK mortgage approvals fell to 61,707 in May, the lowest in 11 months, from 62,806 in April, but net mortgage lending jumped by nearly 2 billion pounds in May.

In the US, pending home sales surged 6.1 percent in May, the biggest rise since April 2010, but the Chicago Institute for Supply Management’s business barometer fell to 62.6 in June from 65.5 in May.

Meanwhile, China has announced changes to the way bank loan-to-deposit ratios are calculated to boost banks' lending capacity. This comes as a survey showed that house prices in China fell for a second consecutive month in June.

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