Thursday, March 21, 2013

Economic Journal - Thursday, 3/21/2013

(As of 7:13 am PST)
 
It is a battle of sorts, with weak economic data out of Europe pulling US stocks down in spite of positive data out of the US.  Europe continues to be mired in recession with a recent PMI number coming in at 46.5.  Any reading below 50 indicates business contraction.  On the other hand, a US flash PMI report came in at a very healthy 54.9, another in a string of reports showing that the US economy is starting to hum.  Jobless claims continue to be at 5 year lows, construction is up and leading economic indicators also rose.  Gold is up moderately and oil is down, after a healthy gain yesterday.  Mortgage interest rates and rates in general are drifting lower as the uncertainty of Cyprus and Europe in general create a desire for the stability of US dollar assets.  I expect strong US data to win the day and that early losses will give way to a positive day on US stock markets.

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