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European Closing Thoughts: Abemus GDP

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European Closing Thoughts: Abemus GDP

Abemus GDP!

In the July to September period, US gross domestic product rose by 2%, up from 1.3% the second quarter, the Commerce Department said. The growth pace also matched the economy's performance in the first three months of the year. The GDP was expected to grow at a 1.9 percent according to Reuters survey.

The US economy sped up in the third quarter as consumers and the federal government boosted spending and home construction accelerated, although business investment fell by the largest amount in three years.

The US GDP lifted european shares from daily lows: Stoxx50 closed the week 0.51% higher to 2,496.10, the German Dax rose 0.44% to 7,231.85, the Italian Ftsemib gained 0.36% closing at 15,584.86 while the Spanish Ibex closed down 0.05% to 7,775.60.

European cash markets were already closed when the German Finance Minister Wolfgang Schaeuble reportedly said that there are doubts on whether Greece will meet requirements for its European bailout, while the news had no impact on European benchmarks it sent US indexes in red territory, while we are writing the DJIA falls 0.26% to 13,070, the S&P500 trades 0.26% lower to 1,409.27 while the Nasdaq leaves on the table 20.21 points trading 0.68% lower to 2,965.91.

The GDP number lifted the dollar which pared gains versus the common currency, at European close the Euro traded flat versus the greenback at 1.2934$. The British pound traded at $1.6107, down from $1.6121 late Thursday. The pound had been propelled higher Wednesday after data showed U.K. GDP expanded at a stronger-than-expected 1% pace in the third quarter as the economy came out of recession. Also today, the dollar slipped to 79.80 Japanese yen from ¥80.29. The dollar rose as high as ¥80.31 in earlier activity as the BoJ is awaited next week.

European worries weighted on Oil futures, Crude for December delivery changed hands at $85.72 on the NYMEX, down 0.35%. Gold instead was lifted by the US macro reading, due to the yellow metal's appeal as an inflation hedge, Gold for December delivery gained $3.80, or 0.2%, to $1,716.80 an ounce on the Comex division of the New York Mercantile Exchange.

This week we observed through the market lens the shifting in investors mood,  although, as we said in the MidSession Review is too early to see the easing measures' impact into numbers, it looks like investors are loosing patience, therefore confidence needs to be restored but what technocrats and politicians need to know is that the time for “salvation speech” is running out.

Have a great weekend.

 

Originally posted at www.77sigmatrading.com

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: News Forex Global Markets Trading Ideas

 

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