One month ago we were very hopeful that a new dawn would appear in the European landscape and that – just like the weather – property markets would enjoy clear improvements. But boy, it was an exciting month with accelerating global financial unrest. We saw Bernanke hinting at slowing down QE, Euro-unrest in Slovenia, further austerity measures in (for example) the UK, and the Chinese experiencing signs of an out-of-control shadow banking system. So it could well become another hot summer again. Notwithstanding all these exciting events all over the world, the Europeans started their summer cycle season with "Le Tour de France." This year the route of the French cycling event has a record amount of mountains to climb and could be a nice metaphor for what will most probably happen with the world economy, the European markets and the property markets, in particular. As we all know, the cyclists have found a "solution" to tackle this heavy challenge. Would some stimulant be a good idea for the European economy as well? Did anybody say QE there? Perhaps it is good that the ECB is cautious.
Source : CBRE Global Investors