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Apple Daily: Afterthought on market report

Apple Daily: Afterthought on market report

Taiwan editorial abstract (File 6 of a daily roundup) It seems that spring is in the air for Taiwan's economy, with the weighted index of the stock market standing at above 8,000 points yesterday and the December consumer confidence index released by the Central University Taiwan reaching a 20-month high of 65.39 points.
As the stock market index is an objective indicator while the consumer confidence index, on the other hand, reflects a subjective notifier, with both ascending, Taiwan's economy seems to be on its way out of the depression caused by the global financial crisis.
Taiwan, along with the rest of the world is adopting a "cautiously optimistic" attitude.
Between the rising consumer confidence and the climbing of stock prices, there is a circular cause and consequence effect. The confidence is built on the assumption of market climate and economic prospects. Policy makers must not try to play the confidence game in reviving the economy.
Investors must not be bewildered by the signs of economic recovery, in view of the hidden obstacles ahead. The central bank may raise interest rates to curb the threat of inflation, a weakened U.S.
dollar can affect the competitiveness of Taiwanese industries, and the carbon reduction demand will lower the investment willingness of cost-conscious manufacturers.
Investors must still be aware of economic landmines, while the U.S. economy may not be able to recover remarkably next year and China's real estate market is still under the bubble threat.
(By Lillian Lin)




Updated : 2021-04-17 14:27 GMT+08:00