Thursday, August 29, 2013

Economic Journal - Thursday, 8/29/2013

(as of 7:15 PST)

Global political tensions are high today.  The international community is stepping back on support of a military strike against Syria even as the US seems on an irreversible course of action.  US stock markets are experiencing a disconnect from the Syrian problem with strong economic data pushing the markets up moderately this morning.  US 2nd Quarter GDP was revised upward to 2.5% growth, a very strong reading. Jobless claims dropped below expectations as well, indicating that the US recovery continues on track.  Gold is down after a downgrade by a major investment bank, while oil is also retreating from yearly highs.  Expect fears of Federal Reserve tapering its bond purchases to put a ceiling on markets gains.  A US military strike against Syria could rapidly change market dynamics.

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