{"id":97457,"date":"2016-10-28T12:29:07","date_gmt":"2016-10-28T16:29:07","guid":{"rendered":"http:\/\/countingpips.com\/?p=97457"},"modified":"2016-10-28T12:29:07","modified_gmt":"2016-10-28T16:29:07","slug":"us-gdp-shows-record-quarterly-growth-in-recent-two-years","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/10\/us-gdp-shows-record-quarterly-growth-in-recent-two-years\/","title":{"rendered":"US GDP shows record quarterly growth in recent two years"},"content":{"rendered":"
October 28, 2016<\/div>
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By IFCMarkets<\/a><\/p>\n

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US stocks slide on weak earnings<\/h2>\n<\/div>\n<\/div>\n

US stocks<\/b> dropped in a choppy session after some final earnings reports came out. US dollar index<\/a>, a measure of a greenback\u2019s value against a basket of six major currencies, advanced to 98.929 and is on track to end this week 0.2% higher near its 9-month high. US dollar rose as US bond yields advanced following higher bond yields in UK and Germany as ECB and Bank of England decided not to hurry with expanding monetary stimulus. The Dow Jones industrial average slid 0.16% to 18,170.02, the S&P 500 fell 0.3% to 2,133.04 and the Nasdaq composite<\/a> dipped 0.65% to 5,215.97. Comcast stocks lost 1.7% dragging down S&P500 index and Nasdaq after Barclays and Deutsche Bank lower its price targets. What is more, the company\u2019s earnings fell short of expectations. Healthcare sector performed well but its gains were offset by decline in consumer discretionary sector and interest-rates sensitive stocks. S&P 500 healthcare sector index advanced 0.53% while real estate sector slumped 2.5%, its worst performance in 6 weeks. After the bell Google Alphabet stocks advanced 2.3% while Amazon.com slumped more than 6% on weak quarterly results. S&P500 Q3 corporate earnings results turned out to be more positive in US than previously forecasted, thus showing the first quarter of profit growth since Q2 2015. Now experts estimate Q3 corporate earnings increased 2.6% while their 0.5% decline was anticipated at the start of October. Today at 14:30 CEST the positive annualized Q3 GDP data came out in US showing the rise of 2.9% after 1.4% in Q2 which shows that US economic recovery is on track which supports the case for December rate hike. At the same time, Q3 personal consumption slowed down to 2.1% instead of expected 2.6% after 4.3% in previous period. Core personal consumption expenditure data for Q3 came out positive. Next US Fed policy meeting is scheduled on next week with little chances of rate hike. The chances for the December rate hike are currently around 78%, according to CME FedWatch tool.<\/p>\n

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European stocks tumbled on Friday on weak corporate earnings<\/h2>\n<\/div>\n<\/div>\n

European stocks<\/b> were declining on Friday on disappointing corporate results. Novo Nordisk stocks slumped 15% and Gemalto stocks tumbled 13.8% on weak earnings results which weighed on pan-European indices. STOXX EUROPE 600 index fell 0.5%. UK\u2019s FTSE 100 index lost 0.14% to 6,976.73, German DAX 30 fell 0.34% to 10,681.14 while French CAC 40 edged up 0.08%.<\/p>\n

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Japanese stocks advance<\/h2>\n<\/div>\n<\/div>\n

Japanese stocks<\/b> were on the rise on Friday as higher global bond yields supported financials. Nikkei advanced 0.6% to 17,446.41, its high since mid-April. This week Nikkei index rose 0.6% so far. Broader Topix rose 0.8% to 1,392.41. Toyota Motor Corp stocks rose 0.5%, Honda Motor Co advanced 0.3%. Hong Kong stocks fell to two-month low on Friday on expectation if looming Fed interest rate hike. Hang Seng index lost 0.8% to 22.954.81 today and 1.8% so far this week. The index was falling on concerns interest rate hike in US will make money outflow from emerging markets.<\/p>\n

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Oil prices retreated<\/h2>\n<\/div>\n<\/div>\n

Oil prices<\/b> lost some of gains of previous day. Brent crude futures<\/a> fell 0.3% to $50.33 a barrel while US crude dropped 0.4% to $49.50.<\/p>\n

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Gold steadies ahead of US GDP data<\/h2>\n<\/div>\n<\/div>\n

Gold<\/b> prices steadied on Friday as markets expected Q3 GDP data to put some clarity to interest rate hike timing. GDP data came out positive which strengthens the case for interest rate hike sooner than later and pushed gold lower. Before the GDP data spot gold was traded little changed at $1,266.42 an ounce while gold futures lost 0.2% to $1.267.10. Silver<\/b> was flat at $17.60 an ounce while platinum<\/b> rose 0.5% to $967.60 and palladium<\/b> gained 1.3% to $618.<\/p>

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Market Analysis provided by IFCMarkets<\/a><\/p>\n

Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets US stocks slide on weak earnings US stocks dropped in a choppy session after some final earnings reports came out. US dollar index, a measure of a greenback\u2019s value against a basket of six major currencies, advanced to 98.929 and is on track to end this week 0.2% higher near its 9-month high. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-97457","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=97457"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97457\/revisions"}],"predecessor-version":[{"id":97461,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97457\/revisions\/97461"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=97457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=97457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=97457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}