Like last week's data; this week's economic indices posted from the U.S, are forecasted to show that the economy is so far recovering at a truly sluggish pace and continues on facing major obstacles, such as the ongoing rising unemployment and overall tightened credit conditions, having investor's confidence really low and affected easily from any gloomy or worse-than forecasted news released.
In fact, the U.S stocks closed last week in red and plunged throughout the midday, despite of current gains in health-care and consumer shares, as fears spread throughout overall markets concerning a global recovery, while that huge U.S huge high-tech corporation; Dell Inc, posted its earnings that came in worse than forecasts, reporting EPS of $0.23 a share down from $0.27 reported in the prior quarter.
Plus, the yellow precious metal; the gold, was able to reach a new record high today above $1160.00 an ounce, as the green Benjamin lost momentum considerably throughout the currencies market since the Federal Reserve will keep its stimulus measures and its interest rates unchanged due the current overall pathetic economic conjuncture, which boosted strongly the appeal of the gold as an alternative investment, knowing that the dollar has a strong inverse relation with the precious metal.
Truth be told, sentiments of pessimism are widely spread within the world's largest economy, as the jobless rate reached and steadied at a 26 years high at 10.2% and may rise further throughout the upcoming period and start recovering gradually by next year, as forecasted by the Fed, alongside inflationary threats due to all the huge amounts of money pumped into the market by the U.S government; whereas the overall spending and income reports of the country remain weak.
Furthermore, inline with the present deterioration of the U.S key sector; the labor market, the housing and the manufacturing sectors are reviving from the recession at a slow rate, as mixed data remain on being spread from both of the sectors, having in fact today's existing home sales for last month. In other words, the number of closed sales of pre-owned single family homes, forecasted to plunge and come in around 2.6% from 9.4%, while the new home sale data that will be released this week for October and may show a slight incline to 405 thousand from 402 thousand.
Moreover, important data will be released later this week, including the third quarter GDP readng, which is expected to show that the U.S. economy grew in the second estimate by 2.9% down from 3.5% in the Advanced estimate, since the prior growth witnessed was artificial and did not reflect the true reality of the prior weak economic conjuncture of the country; being mainly supported by all of the stimulus plans billion of government money injected in the market. Meanwhile, the third quarter second estimate personal consumption may plummet to 3.2% from 3.4%.
Presently, the U.S major trading partner and territorial neighbor; Canada, is undergoing a slow recovery as well since its economy strength and growth is strongly related to the U.S economy, having in fact today's its retail sales data for September expected to drop to 0.6% from 0.8%; the Retail Sales Less Autos forecasted to fall slightly to 0.4% from 0.5%, indicating that the overall sales by retail sellers of goods to consumers is fragile so far, and that the consumption along with the confidence in the economy remains pressured depressingly from the ongoing global economical predicament.
