The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
American third-quarter surge speeds down
In the third quarter, the American economy speeded down more than previously anticipated, while momentum happens to have softened further in the fourth quarter. Last month, new orders as well as shipments of manufactured capital goods decreased.
Surge in the October-December quarter could still be firm and keep the American economy on track on the way to the current presidential administration’s 3% objective this year. In November, consumer spending, accounting for over two-thirds of the country’s economy went up firmly, as other data revealed.
As a matter of fact, the country’s gross domestic product rallied at a 3.4% annualized rate. The given outcome turned out to be down from the 3.5% tempo assessed in November and also above the American economy's surge potential that financial analysts assess to be nearly 2%.
Eventually, the revisions to the third-quarter GDP outcome actually reflected markdowns to experts and consumer spending. What’s more, there were a series of downward updates of business spending on equipment as well as nonresidential structures, in addition to residential investment.
The given downward updates were partially compensated by a greater accumulation of inventory than earlier anticipated. In the April-June quarter, the American economy managed to surge at a 4.2% tempo.
Meanwhile, on Wednesday, the main American financial institution had its interest rates ramped up. The US major bank has done it for the fourth time in 2018. However, the Federal Reserve foresaw fewer rate lifts in 2019 and also hinted that its tightening cycle is approaching an end against the backdrop of financial market volatility as well as decelerating global surge.
As for American stock markets, they weren’t moved a lot by the data due to the fact that market participants closely watched political developments in the US government, noting that US leader threatened a long" government shutdown several hours ahead of a midnight deadline.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…