Morning Bid: Testing the 'Goldilocks' view of the global economy

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Morning Bid: Testing the 'Goldilocks' view of the global economy
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A look at the day ahead in European and global markets from Kevin Buckland.

The 'Goldilocks' view that equity investors are taking of the global economy continued into August, as a benchmark of Asian stocks hovered around Monday's 16-month highs.

Of course a lot can still go wrong, in this week alone. The United States has a string of key jobs reports, culminating with monthly payrolls on Friday. And the Bank of England decision on Thursday could mar the peak rates story for the world's major central banks. Optimism that Beijing will prop up the necessary parts of the economy to ensure it reaches its 5% growth goal has already come off the boil, with Chinese markets the weakest in the region amid profit-taking from Monday's rally.

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