Sub prime lending woes take centre stage
US stocks fell on Wednesday as worries over the worsening sub-prime mortgage market fuelled more caution, sending the Dow Jones industrial average down below the psychological level of 12,000, before closing above at 12,133.40.
Through the volatility we saw the greenback gain slightly against a handful of majors after a narrower than expected current account deficit. The figures released showed the account shrunk to $195.8 billion against estimates of $204 billion. Improvements were attributed to lower crude oil imports and larger amounts if investment income paid to US investors.
After suffering from the unwinding of carry trades on Tuesday, sterling was well bid throughout the day yesterday. In main this was the release of UK unemployment and Average earning figures Wednesday morning.
UK unemployment remained steady at 5.5 percent with the claimant count falling by 3800 ( v market expectation 8000), but the deciding factor in this being the 5th consecutive month in the reduction in claimants.
Also released at this time was UK Average earnings. This figure showed an increase in earnings to 4.2 percent, up another 0.2 percent on the previous month and the highest since last July. This figure fuelled speculation of further rate increases.
Staying with Sterling briefly. The International Monetary Fund said yesterday Britain will be the fastest growing major economy this year. With GDP growing to 2.9 percent for 2007 and outperforming all G7 economies. Separately the CBI also upgraded its forecast to predict 2.9 percent growth this year.
The Euro found strength ahead of a speech from ECB president Trichet yesterday. In his speech he reaffirmed that current inflationary expectations remained stable even in the light of present volatility. The Euro also found strength in market expectations of a rate increase from the SNB in there benchmark rate.
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.
Through the volatility we saw the greenback gain slightly against a handful of majors after a narrower than expected current account deficit. The figures released showed the account shrunk to $195.8 billion against estimates of $204 billion. Improvements were attributed to lower crude oil imports and larger amounts if investment income paid to US investors.
After suffering from the unwinding of carry trades on Tuesday, sterling was well bid throughout the day yesterday. In main this was the release of UK unemployment and Average earning figures Wednesday morning.
UK unemployment remained steady at 5.5 percent with the claimant count falling by 3800 ( v market expectation 8000), but the deciding factor in this being the 5th consecutive month in the reduction in claimants.
Also released at this time was UK Average earnings. This figure showed an increase in earnings to 4.2 percent, up another 0.2 percent on the previous month and the highest since last July. This figure fuelled speculation of further rate increases.
Staying with Sterling briefly. The International Monetary Fund said yesterday Britain will be the fastest growing major economy this year. With GDP growing to 2.9 percent for 2007 and outperforming all G7 economies. Separately the CBI also upgraded its forecast to predict 2.9 percent growth this year.
The Euro found strength ahead of a speech from ECB president Trichet yesterday. In his speech he reaffirmed that current inflationary expectations remained stable even in the light of present volatility. The Euro also found strength in market expectations of a rate increase from the SNB in there benchmark rate.
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.
Labels: currency converter, ECB, sub prime financing
posted by Wise Money @ 8:55 AM
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