Disappointing Retail Sales Figures Add to US Worries
Thu, Mar 13 2008, 15:56 GMT
by Andrei Pehar
The markets stand directionless as everyone looks around and
asks "what's next?"
The retail sales numbers out of the US were a disappointment, coming in
at -0.6% m/m (-0.2% core), both numbers a decline from analyst expectations as
well as the prior month. Declines were seen in all sectors, including
groceries and for the first time in gas consumption (showing rising oil prices
are finally having an effect on consumer spending and driving habits).
Unemployment claims remained unchanged at 353K and business inventories rose
slightly to 0.8%
All of this is more bad news for the worsening US economic situation, and is
adding increased downward pressure on the US Dollar. Only days after the
Fed's latest injection of liquidity, the Dow finds itself struggling once
again, ready to post either a second consecutive day of losses, or a small marginal gain at best.
Currencies like the Euro, Japanese Yen, and the Swiss Franc already find themselves
at record levels against the Dollar, leaving everyone to wonder just how far it
could all go.
