Spreadex Market Update
Rough US retail sales reading causes problems for both Dow Jones and dollar
Dipping back under 18600 the Dow Jones was suitably unimpressed with what the US economy threw up this Friday. Retail sales were the most alarming figure, an upwards revision to 0.8% for June failing to compensate for the 0.0% growth managed across July; things get even worse when the automobile sector is stripped out, core retail sales plunging by -0.3% against the 0.2% increase that had been expected.
Unsurprisingly given those sales figures the preliminary UoM consumers sentiment reading failed to see the recovery forecast, coming in at 90.4 against 90.0 last month and the 91.5 analysts had estimated. Yet the Dow Jones didn’t bear the brunt of the bad news; that honour went to the dollar, which immediately began to suffer as its hopes of a 2016 rate hike were dealt a significant blow.
The European indices, meanwhile, failed to find anything new to do as the afternoon went on. The FTSE continued to hover the right side of 6900, while the DAX struggled to build on 10700 following the confirmation of its quarter-on-quarter GDP decline.
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