Producer price index has influenced the stocks

Stocks are driven by pessimism

In brief: Manufacturing prices have gone higher, stocks reacted with insignificant slump.

All the markets was somehow shoked by the last data on producer prices. The problem is, that the prices are not high, the prices are various. As the experts say, various enough to surprise everyone. New data on producer prices in the United States in November came as a surprise, however, the basic producer price index remained at a fairly low level, and in the near future is unlikely to happen in prices against a background of overall economic picture.

Producer price index in November rose by 1.8%, while in annual terms increased by 2.4% growth in core producer price index up 0.5% in the monthly balance and 1.2% in the annual.

Today stock movements were dictated by strong demand in cash and therefore lowering stock indices and commodities: that pattern is common for modern time. Experts name the fear of inflation as the main driver for such behavior. Once upon a time Feds will dicontinue stimulus measures and stock market will slump to the basics of economic reality, which is dictated by high unemployment and far-from-ideal conditions on the consumer markets.

The Standard & Poor’s 500 Index sank 0.4 percent to 1,109.26 at 1:35 p.m. in New York.

Ukrainian Globalist
2009-12-15 20:10, Economics.

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