(As of 7:25 am PST)
Soft economic data continues
as the week wears on. Markets are down
this morning, continuing the slide from yesterday. Private jobs creation was weak, but on the
plus side, labor costs were down the most in years. Asian markets were mixed with the Japanese
market falling over 3%, continuing its roller coaster performance of the last
month. On the US domestic side, it feels
as if the effects of ‘the sequester’, the automatic budget cuts initiated in
March of 2013, are hitting home. Generally
weak economic reports point to a slowdown in GDP growth and threaten the
fragile economic recovery we have seen thus far. On the plus side, there are more arguments in
favor of continuing economic stimulus providing more fuel for investors. Volatility, which has been very mild thus far
in 2013, is starting to pick up. Expect
markets to shrug off today’s weakness and pick up steam as the day wears on,
finishing on the plus side.
No comments:
Post a Comment