The USA will publish unemployment claims on October 22 at 15:30 MT time. How to trade after the release?
American construction spending suddenly dives in December
In December, American construction spending suddenly declined because investment in both public and private projects decreased. It proves that the US economy lost momentum at the end of the previous year.
As the Commerce Department informed, construction spending slumped by 0.6% after an unrevised 0.8% ascend in November.
Market experts had foreseen construction spending would soar by up to 0.2% in December. The report extended the run of downbeat economic December data, which has come with housing starts, retail sales, home sales, and trade.
On a year-on-year basis, construction spending went up by 1.6% in December. It went up by 4.1% the previous year, which appears to be the weakest outcome since 2011. The publication of the December report was postponed by a five-week partial shutdown of the American government, which concluded on January 25.
December's dismal construction spending data could affect the government's fourth-quarter GDP estimate uncovered last Friday.
The government informed that the American economy shot up at a 2.6% annualized rate for the October-December period, speeding down from the third quarter's 3.4% tempo.
Spending on private construction projects went down by 0.6% in December having gone up by 1.3% in November. Moreover, investment in private residential projects went down by 1.4% having bounced off 3.4% in November. Apparently, the housing market has been suppressed by higher mortgage rates, costly building materials, land and also labor shortages. As for residential investment, it shrank by 0.2% last year.
Spending on private nonresidential structures, including power plants and manufacturing, tacked on by 0.4% in December having dived by 1.1% in November. As for spending on nonresidential structures, it went down in the third and fourth quarters.
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Riskier assets and gold ended last week with huge gains due to the weak US dollar’s performance. Let’s discuss what will drive the markets today.
The market sentiment deteriorated because of the election uncertainty and worries about rising virus cases all over the world. Let's make some analysis!
The focus of traders’ attention shifted from Brexit and the US stimulus to the coronavirus . The WHO claimed that Europe become the new Covid-19 epicenter.
Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.