Latest US Economic Data Hits International Markets

By mosesbet · Filed Under Market News Comments Off on Latest US Economic Data Hits International Markets 

Swing traders betting on the markets long will be disappointed this week as more economic data was released in the US which claimed that employment figures were worse than previously thought.

Non-farm US payroll figures released today signalled that first-time claims rose form 2,000 up to 414,000 for the first week of September 2011, while data for the previous week was also worsened.  In addition, it seems the US government is running out of money as the number of benefit claimers failing to receive support from the US government rose from less than 100,000 to 2,000,000 people.

The miserable unemployment figures in the US affected both the US and European markets.  The Dow Jones is currently trading at 11,412 (down 0.02%) however earlier in the day it was trading at just 11,406 while the FTSE 100 is currently at 5,3410 (+21.79 in the last 24 hrs).

One key figure that swing and long term traders might be interested in is the OECD’s (Organisation of Economic Co-operation and Development) reduced forecasts for economic growth.

The OECD was started in 1948 to help administer and execute the Marshall plan after World War 2.  It currently includes 38 of the world’s biggest economies with an aim to expanding sustainable growth in democratic free market economies and to contribute to the development of multi-lateral (non-disrminary) international trade and development.

The OECD cut its growth forecast for the year to less than 1%.  In response to this news, Finance ministers and Central Bank governors from the G7 countries will be meeting later this week to discuss a reduction in interest rates and plan ahead for the future.

As always, gold is still trading well $1,855 per ounce, which still represents a 4.3% increase over, the last 30 days and an incredible 24% increased over the last 6 months.  Hedge fund managers and Eastern economies such as South Korea and Singapore are still focusing on shifting their foreign reserves from the US dollar to gold, while Indian and Chinese jewellery markets tend to increase their demand for gold and silver at this time of the year.


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