Mixed markets as US retail sales and jobless claims beat estimates
|A mixed day for markets, as US data and a Biden pay deal for railroad workers avert fears of an impending economic crisis.
Selling pressure eases, as US data helps alleviate economic concerns
“The sharp selling pressure seen at the beginning of the week has eased somewhat, as traders await the next major move lower in anticipation of a potential 100-basis point hike from the Fed. Surging core inflation figures have highlighted the need to act with conviction, and it is that expectation which drives underperformance for the likes of the Nasdaq and Gold. The relatively healthy set of data points released today have helped ease fears of an impending economic crash, with initial jobless claims, and retail sales both improving over the month. Interestingly, there are some tentative signs that prices are easing, with import prices, export prices, and Philly Fed ‘prices paid’ all moving lower .”
Biden strikes deal to help avert major railroad crisis
“Joe Biden appears to have averted the impending railroad crisis that could have brought widespread strikes throughout the rail system tomorrow. With workers complaining over wage and working conditions, tomorrow brought the end of the cooling off period that had largely averted a costly shutdown across the railroad system. While rail stocks have enjoyed a strong start to the day in the US, the repercussions are more widespread given the speculated $2 billion-a-day cost to the US economy should the strikes have gone ahead.”
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