Stocks Ignore Bullish Economic Data; Turn Focus on Risk
U.S. stock indices had enough information in today’s bullish GDP report to mount a strong rally, but concerns about the debt crisis in Greece and a poor outlook for technology stocks led to a late session sell-off. If the situation in the Euro Zone continues to escalate and capture the bulk of the headlines, then look for investors to turn more risk averse. This will underpin the Dollar but pressure stock indices and gold. The robust GDP report should have pressured the
USD higher, Q4 GDP expanded by 5.7%, best in six years
USD: Higher, US Q4 GDP confirms faster growth, bond yields rise, consumer sentiment beats expectations JPY: Lower, Japan’s deflation accelerates, pressure on BOJ to ease, threat of intervention EUR : Lower, concern Greek fiscal troubles may spread, EU unemployment and CPI rise GBP : Lower, S&P says UK banking system less stable, UK house prices rise CAD and AUD: AUD lower & CAD mixed, India hikes its reserve ratio 75 bps Overview USD traded mixed ahead of today’s release of Q4 GDP. JPY