The American economy has delivered some conflicting data sets in recent times, as financial market growth has conflicted with fluctuating levels of unemployment, job creation and consumer confidence. This is a trend that has been prominent across several nations, as the global economy has teetered on the brink between recession and sustainable economic recovery.
With the second financial quarter of 2013 now firmly underway, however, there are signs that global economic growth is now far more robust and consistent. This means that both economies and the financial markets are experiencing universal prosperity, triggering improved sentiment among business owners, consumers and traders.
The recent economic outlook supported this assertion, with markets rising on Monday after significant gains were made by the American economy. The most recent support of growth was triggered by an extremely optimistic U.S. jobs report, which gave weight to the suggestion that the global recovery may be gathering momentum. This information is also supported by this survey that offers a statistical analysis on employee retention rates. Both the U.S. Dollar (USD) and stocks subsequently soared to new highs on Friday, after unemployment fell to just 7.5% and achieved its lowest level since the distant summer of 2008.
The impact of this was felt globally, as the Asia-Pacific markets also soared to considerable heights. Hong Kong rose by 1.02% during afternoon trade of Friday, for example, while Shanghai advanced by a further 1.13%. Sydney also followed suit, while Malaysian shares soared by a staggering 7.76% to achieve a record high of 1,823 points. When you consider that both the Dow Jones Industrial Average and S&P 500 have both had the distinction of breaking similar national records in recent times, then you begin to understand the importance of sustainable economic growth.
Even European nations seem to be displaying more positive signs, with the UK having recently avoided the threat of an unprecedented triple-dip recession. This came as a considerable surprise to economists, who had questioned the governments austerity measures and forecast a prolonged period of recession for the island nation. With the British economy growing tentatively and the nations level of borrowing having fallen for the first time since the beginning of the recession, it seems as though America remains influential in terms of dictating the terms of global economic development.
While stocks have soared considerably in the wake of American economic expansion, however, those involved with forex trading can also look forward to greater levels of prosperity. Whilst the USD remains the most popular influential currency in the world, it must also be remembered that a positive sentiment makes it far easier for traders to identify trends associated with the market and wider economy. As a result, economists are beginning to predict a cycle of growth and development that can impact on countries throughout the world.
Despite the recent economic uncertainty that has undermined the prospects of a global recovery, America appears to be leading the way towards more sustainable growth. This is also impacting heavily on the financial markets of the world, especially those that deal in stock equities and international currency pairs in the far East. So long as the U.S. economy can sustain its current level of momentum, there is every chance that the ghosts of the global recession may be finally laid to rest.