Market Intelligence
The positive news continued throughout the two week period under review (December 1-15). At least people appeared to be thinking more positively, which is probably the most important thing. The stock markets made further gains as the Dow Jones climbed above the bellweather 10.00 threshold for the first time in a long while and the wider US economy continued to expand. A key indicator was the closely-watched ISM manufacturing index which rose to its highest level for almost 20 years, as did levels of productivity. More surprisingly, the Japanese business survey (Tankan report) displayed its best results for the past 6 ½ years while the US unemployment rate fell marginally to 5.9 %. Levels of unemployment in Euroland at least remained steady at 8.8%. The US Federal Reserve opted to leave interest rates alone saying recovery in the economy was not yet solid enough to justify short term change. It is to be hoped the European Central Bank follows the same line. China’s inexorable rise on the way to becoming the manufacturing hub of the world was meanwhile underlined by the 18 % rise seen in industrial production during November against November 2002.
