Consumer Confidence Low

Published by Filipe R. Costa on Wed, 29/08/2012 - 11:22
eurozone problems

Daily Market Commentary for August 29: Even though economic indicators point to a less brighter future than first thought, investors don't want to miss any rally and continue to back equities.

The Conference Board consumer confidence index showed a deterioration from last reading. The index is now at 60.6, much below what was expected. Pessimism on future business conditions, employment and income are the main drivers for this downward tendency. Gold benefitted from this release as the registered pessimism increases the odds for FED intervention but the bulls are not really around at this point and prefer to wait for more clues before driving gold higher.

In Spain, GDP was revised downwards and in Germany, business confidence is taking a hit. Equities are retreating in Europe during the morning.