Tuesday, February 26, 2013

Economic Journal - Tuesday, 2/26/2013

(As of 7:25 am PST)
 
US markets are recovering from yesterday’s pummeling which saw stocks decline 1.5% on the day.  Strong US data, particularly in the housing sector, is pulling some investors back in.  Home prices rose in December to cap off the best calendar year since 2005.  New home prices jumped 15.6% in January recording the highest pace of activity since 2008.  Consumer confidence also surprised to the upside after falling in January.  Political turmoil in Italy continues to frustrate investors around the globe with inconclusive election results ushering in a fragmented government and renewed risks to the European debt crisis.  European markets were beaten down for a second straight day and Asian markets sold off following Wall Street’s slide yesterday. As Ben Bernanke takes the stand before congress today, investors will likely remain cautious as uncertainty around sequestration and now Europe prevails.

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