U.S. economic growth slowed during the second quarter more than economist estimates, pressuring equity markets before the opening. Expectations were for a rise of 2.5% to 2.7%. The actual GDP figure was an increase of 2.4%. Stocks fell on the news as investors shed risky assets.
Treasury futures rallied in flight-to-safety buying as yields in the 30-Year Bonds and 10-Year Notes plunged. Expectations are the Fed is likely to keep interest rates down for a prolonged period of time.
The Dollar is trading higher against most major currencies with the exception of the Japanese Yen. Traders are leaving the higher risk and commodity-linked currencies this morning and seeking shelter in the lower yielding Dollar and Yen. Some traders believe the slowdown in the U.S. economy will curtail the global economic recovery.
