Meanwhile, things in the U.S. seemed much calmer.
No GDP figures released this week and the strong momentum from previous weeks seemed to have ensured that even bad news were received with skepticism at most.
Retail sales published on Tuesday were first to bring bad news, as they indicated only a 0.2% improvement over the previous month, versus an analyst consensus of 0.3%.
Markets seemed rather indifferent, as the equity markets traded higher (on average) at the end of the trading day.
Similar was the response in the bond markets, as the U.S. 10-year bond yield increased from around 2.63% to 2.72% throughout the day.
Additionally the Producer Price Index showed no monthly change, when it was published on Wednesday.
That did not raise concerns for weak demand, as markets didn’t seem to move too much.
Those figures did seem to nudge the markets as 10-year bond yields surged further to a level of 2.82%, the highest in the past two years.
Equity markets didn’t seem very fond of the fact that firms will now need to raise capital more expensively, however, with the Dow dropping approximately 1.5%, versus the previous day’s close.
At the end of the day, it’s important to remember that so long as the quantitative easing takes place and the Fed’s rate is at 0.25%, the U.S. economy can manage on its own is ungrounded.
More so, even the identity of the next Fed Governor, who should lead the future U.S. monetary policy, is yet to be decided.