US Retail Sales beat expectations...
U.S Retails Sales were surprisingly strong last month with the headline number rising by a larger than expected 0.9% verses expectations of 0.6%. After stripping out Autos the number was even stronger at 1.0% verses expectations of 0.5%.
The previous month's reading was revised lower but overall it was still a positive reading prompting some to re-consider previous calls for U.S Interest Rate cuts in the first quarter. The USD initially gained on the news but profit taking soon saw the sellers back in numbers.
The Fed has kept benchmark interest rates steady at 5.25% since June and has remained focussed on inflation risks. Officials have forecast that economic growth at a slower pace than the economies full potential will reduce inflation to more comfortable levels.
It is a heavy week for data this week particularly in the UK with a number of key house price indicators along with CPI, Labour market and retail sales for December. CPI will be closely watched as the MPC may have been aware of the strong number when it chose to hike rates last week. Strong house price, CPI and retails sales would likely re-enforce market perceptions that the MPC may have further tightening to do in the coming months.
In other markets there will be a strong focus on the performance of the FTSE today after European stocks pushed to their highest close in nearly six years last week. The demand was fuelled by a spate of corporate merger activity and by a number of strong trading updates from the larger retailers. The FTSE closed at 6239 up just 8.9 points on the day. Oil prices stabilised at just under $52 a barrel after a 15% slide in the first 11 days of the year driven partly by the weak demand for heating fuel.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The previous month's reading was revised lower but overall it was still a positive reading prompting some to re-consider previous calls for U.S Interest Rate cuts in the first quarter. The USD initially gained on the news but profit taking soon saw the sellers back in numbers.
The Fed has kept benchmark interest rates steady at 5.25% since June and has remained focussed on inflation risks. Officials have forecast that economic growth at a slower pace than the economies full potential will reduce inflation to more comfortable levels.
It is a heavy week for data this week particularly in the UK with a number of key house price indicators along with CPI, Labour market and retail sales for December. CPI will be closely watched as the MPC may have been aware of the strong number when it chose to hike rates last week. Strong house price, CPI and retails sales would likely re-enforce market perceptions that the MPC may have further tightening to do in the coming months.
In other markets there will be a strong focus on the performance of the FTSE today after European stocks pushed to their highest close in nearly six years last week. The demand was fuelled by a spate of corporate merger activity and by a number of strong trading updates from the larger retailers. The FTSE closed at 6239 up just 8.9 points on the day. Oil prices stabilised at just under $52 a barrel after a 15% slide in the first 11 days of the year driven partly by the weak demand for heating fuel.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
posted by Drs Search @ 10:12 AM
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