It seems that Europe and the US are moving in different directions, economically speaking that is. Disappointing data from Europe and Asia had stocks on the defensive to start the morning, but solid US data has markets in a recovery mode. In the US, jobless claims continue to show improvement, while inflation continues to be well contained. The Philly Fed Index, a key measurement of industrial activity came in very high and well above expectations. Housing data was also good. Profit reports are coming in strong this morning and may provide momentum necessary to break out of the early slump. The US dollar is down against most currencies while oil and gold hover around the unchanged mark. Interest rates have fallen slightly and continue at extremely low levels. While everyone is looking for more of a pullback, today's data indicates that this won't be that day.
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