The market sentiment remains risk-off amid rising virus cases around the world and fears over new restrictions and lockdowns.
American second-quarter GDP surge jumps to 4.2%
In the second quarter, American economic surge turned out to be a bit stronger than initially anticipated, demonstrating its best performance for nearly four years and putting the US economy on track to meet the Trump administration's objective of 3% annual surge.
GDP jumped at a 4.2% annualized rate, as the Commerce Department informed. It rallied a bit from the 4.1% tempo of expansion posted in July. What’s more, since the third quarter of 2014 it happened to be the fastest rate.
The US economy rallied at a 2.2% tempo during the January-March period. Apparently, the moderate upward revision to surge the previous quarter actually reflected more business shelling out funds on software than previously anticipated and also less imported petroleum.
Firmer software investment along with a smaller import bill compensated a downward update of consumer spending. US leader, whose administration has backed boosting annual economic surge to 3% on a regular basis, appreciated the updated second-quarter report.
The American managed to expand by 3.2% in the first half of this year, adding from the 3.1% estimated in July. In contrast with the second quarter of the previous year, output jumped by 2.9%, instead of the previously posted 2.8%. Market experts stressed that the second-quarter surge tempo was unsustainable as it was mostly powered by one-off factors.
Besides this, the American economy faces constraints, including low productivity as well as slow population surge.
However, there are indications that some of the momentum was lost in the beginning of the third quarter. On Tuesday, the US government informed that the goods trade deficit rallied by 6.3% hitting $72.2 billion in July due to the f act a 6.7% dip in food shipments put pressure on exports.
While in the third quarter consumer spending has been still firm, the housing market has decreased further with homebuilding adding less than anticipated in July and sales of new as well as previously owned houses dipping in the face of a dearth of properties.
China's industrial rebound, progress in US fiscal stimulus and other important news in this article.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.