Recently B.Bernanke stated that the FRB is ready to intervene when required. One more disappointing report may push the FED to a new stage of quantitative easing strategy. Therefore, let us proceed to our monthly task of trying to predict the course of employment indicators using pay-roll record data.
U.S. reports have helped to stimulate demand for the dollar only, because data on the housing market were not as bad as expected. In the United States was started 549 thousand construction jobs, which was 5% below the May figures, having descended to 8-month low. However, it became known that the number of building permits (an indicator pointing to further activity in the sector) in the last month showed an increase of 2,1% to 586,000. This pattern suggests that builders are still hoping that the recovery in the sector will continue.
Nasdaq Composite, Standard & Poor’s 500 and the DJIA are not able to cope with yesterday’s bearish trend. The level of support for the stock market remains very weak. Dow Jones industrial average: 9686.48 points (-46.05 points) -0.47%, Nasdaq Composite: 2091.79 points (-9.57 points) -0.46%, S & P 500: 1022.58 points (-4.79 points) -0.47%.
Foreign exchange analysts Mizuho note that the performance index of business activity in the Philadelphia Fed manufacturing industry was below the forecast, the number of new orders remains low, and the number of workers is declining.
Private markets in the U.S. and the UK provided an excellent atmosphere of tranquility and lazy fluctuations in the currency market. Of course, the absence of a large number of players could lead to high volatility, but nothing like this has happened, except for the weakening of the yen in response to political developments in Japan. Nevertheless, we expect that in the near future the dollar will retain its status as the most popular currencies, given the uncertainty about global economic prospects.
Brazil, Argentina, Russia, China, India, Poland and SAR are first to overcome the recession. The matter is that returning perspectives seems simpler than keeping well existing positions. Developing countries invest in actives avoiding those passing by. Some years ago the USA was the leader in the world economics.