So, is this July and August going to be as bad as last year’s for the stock markets? Remember the plunges: Reasons to think things why could get steadily worse.
— jobs are being created at a snail-like pace in the US,
— in China the decision to cut interest rates suggests the economy there could be in a worse state than had been feared,
— last Friday, German bonds and US Treasuries rose sharply and the euro tumbled to the lowest level against the dollar since the beginning of June,
— France has to cut reduce its budget deficit when it has promsed to spend, spend, and
— the Greeks, Italians and Spainards are trying to weasel out of their promises to reform.
The oil price fell 3.2% in New York last Friday – and this was at the end of a week when Iran had been testing missiles and threatening tanker supplies in the Persian Gulf, which should normally have jerked prices upwards.