Weekly Economic Review (June 24 - June 28, 2013)
US stocks were mostly higher this week as weaker than expected GDP growth eased concerns of an early Fed exit from its stimulus program.
Reports showing better-than-expected consumer spending, a jump in pending home sales, and a drop in jobless claims emboldened investors to dive into riskier assets.
Better economic data from Japan and efforts by China's central bank to ease credit concerns further added to the positive tone. Investors were also encouraged by optimistic comments from key US Federal Reserve officials and Goldman Sachs CEO Lloyd Blankfein.
Following is an economic review for the week June 24 - June 28, 2013.
Tuesday, June 25
CB Consumer Confidence:
US Consumer Confidence rose to its highest level in more than five years, bolstered by a more optimistic outlook for hiring. Consumer Confidence Index jumped to 81.4 in June, the best reading since January 2008 and up from 74.3 in May.
New Home Sales (May 2013):
Sales of new homes increased 2.1% in May to the highest rate since mid-2008, reflecting the continued resurgence in the US housing market.
Wednesday, June 26
Final GDP (q/q):
US stocks closed sharply higher after weaker-than-expected US economic growth for Q1 diminished worries that the Fed would rein in its stimulus measures in the immediate future. US GDP growth was more tepid than previously estimated (1.8% vs. 2.4%) in the first quarter, held back by a moderate pace of consumer spending, weak business investment and declining exports.
Thursday, June 27
GB Current account:
UK current account deficit was unexpectedly deeper as it fell to £14.5 billion in Q1 2013, more than the revised drop of £13.6 billion, originally reported at £14 billion expansion, a quarter ago.
US Unemployment Claims:
Unemployment claims fell 9K to a seasonally adjusted 346K, in line with the recent moderate pace of jobs growth.
Pending Home Sales:
Pending home sales jumped 6.7% to 112.3, the highest since December 2006. Gains in sales of previously owned properties are expected to encourage a pickup in purchases of home furnishings, spurring economic growth.
Friday, June 28
Canada GDP (m/m):
Canada's economy grew by just 0.1% in April from March, confirming that after a strong Q1, growth is slowing amid continuing global economic uncertainty.
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