US Economy Growing at 1.7%

Published by Filipe R. Costa on Thu, 30/08/2012 - 10:49
ben bernanke

Daily Market Commentary for August 30: The US economy is growing at a better pace than first thought. The US Bureau of Economic Analysis reported a growth of 1.7% for the second quarter, while the advance estimate reported one month ago showed 1.5%.

Although a better than anticipated growth rate seems to be good news, truth is that, at this point, with investors looking for QE3, any good economic indicator is always seen with some apprehension. While the revised growth shows a better expansion for the economy, it is not enough to create jobs and maybe also not slow enough to lead the Fed to act.

Pending home sales in US rose 2.4% in July, another good signal coming from the sector.

While investors are digesting economic data, all eyes are on tomorrow’s Ben Bernanke Jackson Hole speech. Investors are desperately looking for some clues about QE3 and will be disappointed if they can’t get any.

For now, the FTSE is retreating a few points to 5,734 and the Euro continues strong above 1.25. The ECB main policy makers aren’t going to Jackson Hole, and investors are looking at it as a clear signal the ECB is preparing action and is currently debating the terms for it, as they will most likely unfold it at the next meeting, schedule for September 6.

Name Last price Close Price % 5-Day % YTD %
Nasdaq 100 Index 29/08/2012 2784 0.05 0.02 22.22
Silver (LBM) $ 29/08/2012 30.66 -0.45 4.5 9.66
S&P 500 29/08/2012 1410.49 0.08 -0.21 12.16
Crude oil (Light Sweet) Composite 29/08/2012 95.14 -1 -2.27 -3.9
Dow Jones Industrial Average 29/08/2012 13107.5 0.03 -0.5 7.28
DAX (Xetra) 29/08/2012 7010.57 0.11 -0.1 18.86
Gold (LBM) $ 29/08/2012 1656.1 -0.81 1.01 5.69
FTSE 100 29/08/2012 5743.53 -0.56 -1.95 3.07
CAC 40 29/08/2012 3413.89 -0.51 -1.38 8.04
Nikkei 225 29/08/2012 9069.75 0.4 -0.68 7.27
FTSE MIB 29/08/2012 14943.5 -0.33 -2.52 -0.97
GBP/USD - US $ per £ 29/08/2012 1.5828 0.02 -0.35 1.92
IBEX 35 29/08/2012 7306 -0.37 -0.47 -14.71
EUR/USD - US$ per Euro 29/08/2012 1.253 -0.33 -0.03 -3.27
EUR/GBP - £ per Euro 29/08/2012 0.7917 -0.33 0.33 -4.98
USD/JPY - JPY per US$ 29/08/2012 78.73 0.2 0.23 2.39