What happened? On Monday, February 21, Russian President Vladimir Putin signed decrees recognizing the sovereignty of the Donetsk and Lugansk People's Republics…
American consumer morale is at one-and-a-half year-minimum
In January, American consumer confidence headed south to a 1-1/2 year-minimum due to the fact that a partial shutdown of the US cabinet as well as financial markets turmoil left American households somewhat anxious about the US economy's prospects.
The dive in confidence posted by the Conference Board on Tuesday actually mirrors another poll conducted earlier this month that showed that sentiment tumbled to its lowest value since Donald Trump was elected, backing experts’ assurance that the American economy was losing momentum.
In January, the Conference Board's consumer confidence index headed south by 6.4% ending up with 120.2. It appears to be the lowest outcome since July 2017. Experts explain the third monthly dive in a row by financial market volatility as well as the government shutdown.
The poll’s expectations measure headed south to levels last observed in October 2016. The longest shutdown in the history of the United States concluded on Friday when US leader and Congress agreed to temporary government financing, without funds for his US-Mexico border wall. As the nonpartisan Congressional Budget Office points out, the American conomy was deprived of $11 billion for the five-week shutdown.
With the government shutdown as well as financial markets stabilizing, a number of experts actually expect a rebound in confidence in the nearer future.
However, others don’t demonstrate such a confidence, drawing attention to the fact that for the last three months the Conference Board's confidence index has gone down 17.7 points, which appears to be the most impressive decrease since 2011.
American Treasury prices went up on the confidence data. At the same time, the evergreen buck was nearly intact versus a group of its rivals. As for American equities, they generally tumbled reacting to fears about the approaching US-China trade negotiations.
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The United States will publish the Federal Open Market Committee Meeting Minutes on November 24, at 21:00 GMT+2.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.