Interest rates – remain at 4.75%. The next MPC decision will be on October 6.
CPI – remains at 2.5%. The next inflation report will be on October 17.
Consumer Confidence – remains at -8 . The next consumer confidence report will be on September 29.
UK Manufacturers are worried about higher energy prices, having seen their costs [...]
PPI – The August Producer Price Index rose just 0.1%, as the amount spent by businesses on energy moderated after recent jumps.
Wholesale energy prices rose 0.3% in August after a jump of 1.3% in July.
House construction falls by 6%.
GDP grew by an annual rate of 2.9% in Q2 (versus initial estimates of 2.5%) compared [...]
Productivity – Fed Reserve Chairman Bernanke said strong growth in US productivity will probably go on for some time as companies and industries make better use of computers to raise workers per hour output.
Unemployment – US employers added 128,000 jobs in August, a sign that whilst the economy is still growing, the rate of growth [...]
Fed minutes – FOMC minutes released yesterday indicated that the Fed was unlikely to raise interest rates (currently 5.25%) in either September or October.
Hurrcane Season – Ernesto loses strength and veers away from oil and gas fields in Gulf of Mexico.
Crude oil – oil price closed below $70 as a result, but moved back [...]
Fed releases minutes August 29
After the last Fed meeting, interest rates were held at 5.25%, ending an unbroken series of rises that began in June 2004.
The markets are eagerly awaiting to see what was discussed during the meeting This was evident yesterday when comments by Chicago Fed Reserve President Michael Moskow caused the [...]
CPI
The Us Government’s Consumer Price Index (CPI) rose 0.4% in July ,in line with analysts expectations, and up from a rise in June of 0.2%.
US House Market
The National Association of Homebuliders index of sentiment fell seven points to 23 in July, it’s lowest level since February 1991.
Commodities
Oil – prices edged lower in cautious trade [...]
Fed holds rates for first time in 2 years
After Tuesday’s Fed meeting, interest rates were held at 5.25%, ending an unbroken series of rises that began in June 2004.
At the meeting it was noted that “some inflation risks remain”, leaving open the extent and timing of any additional firming. This suggests that the Fed retains [...]
Middle East conflict continues
US economy slows ; worries develop over impact of benefits on economic growth
Japanese land prices rise
Oil prices back up to over $75 per barrel
Gold prices rise as a hedge
German Business confidence fell from a 15 year high in July – causing a threat to Europe’s largest economy.
US consumers surprised financial markets by becoming more optimistic about the economic outlook. Analysts had expected a fall as global problems had caused consumers to rein in spending.
Analyst expectations in US remain cautious and below levels of [...]
Global Tensions Impact Markets
Increasing tension in the Middle East as Israeli troops enter
Lebanon.
Hezbollah links with Syria and Iran (OPEC’s No.2 supplier) mean
that the issue is not localised and could lead to extensive conflict
over an extended period of time.
Continued unrest in Afghanistan as US-lead coalition forces
advance on the Taliban.
North Korean missile test are off the [...]