The latest China Trade data of June 2012 shows Trade surplus of USD 31.7 Billion which is the highest single Month surplus since January 2009. The second quarter GDP data will be announced soon and it is expected that Growth rate will come down to 7% as against 8.1% growth in Q1. The 19th~20th June FOMC meeting minutes is now out and it clearly shows that more easing will be released only if the USA recovery lost momentum. So QE3 may not come very soon. Spain is trying to improve its fiscal deficit and has announced certain austerity measures (VAT hiked by 3% to 21%, Unemployment benefit and civil service pay cut) India May Month IIP is now released and has shown growth of 2.4% as against 0.1% in April 12. This does not give any indication as we have seen huge swing in IIP data in the past. It will be too early to say anything about Indian Economy based upon this IIP data. Indian Stock Market is gradually going up with minor correction on few days. SENSEX has gained about 14% YTD 2012 due to the huge inflow of FII money to India. Net FII inflow in YTD 2012 has touched USD9.7 Billion. Dollar Index has touched two year high of 83.57 as USD is gaining against all major currencies after the FOMC Minutes indicated that QE3 is not expected soon .JPY is appreciating against USD and has touched 79 which may lead to BOJ announcing intervention to support its currency appreciating further. Unlike India Japan is concerned about the appreciation of its own currency as it impacts the Exporters.
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