While some economic data released recently about the U.S. economy exceeded expectations U.S. stock indices went down today. Both Fitch Ratings and Moody's Investors Service said that the recent agreement at the summit of European leaders has not done much to relieve pressures on those European governments that are struggling with huge debts and high borrowing costs.
The warnings were enough to reverse a rally that has been going on in U.S. for a couple of weeks in spite of the fact U.S. indicators show the economy is outperforming expectations the most in nine months. An Economic Surprise Index went to 85.7. This is the highest since March 9.
November unemployment although still very high, hit the lowest level in two years. Manufacturing is also growing quickest in five months. Nevertheless Ben Bernanke head of the Federal Reserve said that there were significant downside risks facing the U.S. economy. For much more see this article.
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