Financial markets ended the week on a quiet note with only two days before the Christmas holiday. Financial Stocks pushed the markets Friday and the U.S
Financial markets ended the week on a quiet note with only two days before the Christmas holiday. Financial Stocks pushed the markets Friday and the U.S economic data reported better than forecasted figures, toting up to signs the economy was improving, pushing US markets upwards. By all accounts the US markets are improving, slowly but definitely improving.
Gross Domestic Product (GDP) data was the only off-putting in the forecasts today but that was a revision of prior quarter results, the U.S Department of Commerce announced the nation grew at slower pace than forecasted in the third quarter, and it was revised to 1.8 percent from 2.0 percent annual pace, below median estimates of 2.0 percent as well. A previous report stated that health and medical spending increased at a $19.7 billion rate. Health care spending reduced about 0.1 of a percentage point from the GDP change in the final revision, in the previous estimate; it added 0.61 of a percentage point to growth.
Despite the downward revision, the third-quarter growth is still a step up from the April-June period’s 1.3 percent pace. Part of the pickup in output during the last quarter reflected a reversal of factors that held back growth earlier in the year.
Other reassuring news was the U.S Department of Labor report that the U.S unemployment claims fell to the lowest level since April 2008, beating average estimates for the third consecutive week, while Michigan’s confidence rose more than forecast in December, in addition, the U.S Conference Board’s leading indicators rose above projections in November.
The US government’s count of first-time filings for unemployment benefits last week declined to 364,000. And, the Conference Board’s index of leading economic indicators rose 0.5% in November after a 0.9% rise the month before. Separately, the Thomson Reuters/University of Michigan’s final reading of consumer sentiment rose to 69.9 in December from 64.1 at the end of last month.
A survey reported on Thursday showed that consumer sentiment rose in December to its highest level in a half year and a gauge of future economic activity increased more than expected in November because of a sharp upswing in new permits to build homes.
Slight gains were seen in the currency markets today, but the biggest were mostly in the equities since demand for safe havens ebbed down. The U.S dollar erased an early gain after oil rose for the fourth consecutive day, euro and pound rose while the yen fell following strong economic reports about the U.S economic progress.
The U.S dollar index eased below the opening level of 80.18 to trade at $80.18, recording the highest level of 80.138 and lowest level of 77.646. The EUR/USD pair dropped a bit from the opening level $1.3036 levels and currently holds at $1.3043 levels.
The GBP/USD set moved above the cut at $1.5679 compared to the opening level of $1.5667, while the USD/JPY moved up after opening at ¥78.08 levels and rounded out the day at ¥78.17 levels.