Daily Market News 25 Mar 2011

 

Yesterday’s Market Movers

• In the UK we had the Retail sales figures (MoM) and (YoY) which both came out worse than expected at 1.3% and -0.9%. Sterling dropped on the back of this information as this is showing downside risks to a growing economy and indicated the UK may hold off a rate hike for a few months. Sterling traded at its lowest so far this year against the Euro trading at a low of 1.1351.

• In the US we had the durable goods orders and the durable goods orders ex transportation for February. Both came out unexpectedly worse at -0.9% and -0.6% this has raised concerns over the sustainability of the rebound in U.S. business investment. Initial jobless claims held steady at 382k, this was the second drop in a row but this had little effect on the US Dollar.

 
Today’s Market Movers

• From Europe we have the German IFO business climate, current assessment and expectations all for March. Each figure is expected slightly worse than previous, showing that economic growth has slowed in the short term. We may see the Euro weaken slightly if the figure comes in negative.

• Also form Europe we have the M3 money supplyIt calculates all currency in circulation, bank deposits, repurchase agreements, debt securities up to 2 years and the value of money market shares. It calculates all currency in circulation, bank deposits, repurchase agreements, debt securities up to 2 years and the value of money market shares. (QoQ) and (YoY). (QoQ) is expected slightly worse at 1.6% and (YoY) it’s expected slightly better at 1.7%.

• From the US the GDP figures are expected to be half of the previous, this may show a lack of economic growth in the US as the figure is expected at 0.4% from 0.8%.

• As well as this we have the real personal consumption expenditures (QoQ). This is the average amount of money that is spent by consumers in a month and as such as is a good indication of inflation in the economy.