As hurricane Sandy advanced on the US, not discounting the tragic loss of lives, the overall damage was deemed to be less severe than expected, resultantly investor confidence remained intact. Reports suggest that the rebuilding efforts will cost upwards of $20bn, a project that will serve as a boost to the US economy.
Despite broad predictions of a strengthening dollar on the uncertainty, the currency dropped off against many of its counterparts during trading. Today, as the NYSE reopens and key economic announcements are made in the States, the path of the dollar could show sharp movements as investors gauge the risk versus reward equilibrium.
In the UK, improved retail sales helped the sterling to hamper its previous slide, though not completely reversing it. Gaining ground on the dollar, the pound was bettered by the euro, which shrugged off higher German unemployment to record greater demand through better than expected Spanish GDP and strong performing stock markets.
Key discussions in the euro zone take place today, after Greek PM Samaras claimed great progress had been made with Greece’s debt problem. A conference between leaders will assess the opposition to any debt restructuring, though no decisions are expected so soon.
Meanwhile in the US, as the East coast continues to recover from the hurricane and some form of normality returns to the markets, attention will be fixed on the aftermath effects and economic announcements.
Key Announcements Today:
- 08.00am – EUR – German Retail Sales m/m: better than expected at 1.5%
- 08.45am – EUR – French Consumer Spending: fairly flat at 0.1%
- All Day – EUR – Eurogroup Meetings
- 11.00am – EUR – CPI Flash Estimate: expected at 2.5%
- 13.30pm – USD – Employment Cost Index
- 14.45pm – USD – Chicago PMI
See previous Daily Market Reports