Market is expecting Michigan sentiments index…Brief review of the market. by OpenForex.com

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Market is expecting Michigan sentiments index…Brief review of the market.

19:07 05/30/2004

Market is expecting Michigan sentiments index…Brief review of the market. Brief review of the market. The dollar got under the strong pressure and declined against major world currencies after the release of economic data on the U.S. Unemployment claims disappointed the market players, as they expected a more significant reduction in the number of unemployed. GDP data came out worse than expected, though showed growth. Monthly employment rate report that is due next week in the U.S. contributed to dollar weakening. Market is expecting the final Michigan sentiments index release. On Thursday, the U.S. Labor Department reported that number of Americans claiming first-time jobless benefits reduced last week, as economic advance does not contribute to staff dismissal but, on the contrary, makes companies’ managers keep the amount of employed on the high level. First-time jobless claims reduced from revised 347000 to 344000 during the week ended May 22. Economists thought that number of unemployed would reduce from the initial 345000 to 335000 and the forecasts ranged from 325000 to 350000. This year, the average amount of weekly unemployment claims makes up 347500 against 415000 at the similar period of the previous year. Four-week moving average, smoothing uneven weekly indicators and the most stable unemployment trend indicator, rose from 334000 to 335500 last week, which is the lowest since November 2000. Repeated claims rose 190000 to 2,948 million in the week ended May 15. The Labor Department said that in the week ended May 15, 29 states and territories of the U.S. reported increase in the number of claims and 24 states and territories recorded reduction of the given indicator. On Thursday, the U.S. Department of Trade reported that, according to specified data, U.S. GDP rose 4.4% annual rate in the first quarter. According to initial data published at the end of the April, GDP growth equaled 4.2%. In their initial report of the Department, price index of the base consumer spending rose 2.0% annual rate in the first quarter. Index rose 1.7% in the revised report. The U.S. Department of Labor also submitted retail inflation data for April. CPI rose 0.2% in April but its base component, excluding food and energy, rose 0.3%, which was 0.2% higher than forecasted by economists. The U.S. Department of Trade reported that the volume of durable orders dropped 2.9% in April compared to March. According to the revised data, durable orders rose 5.7% in March, after having risen 3.9% in February. Earlier, it was reported that durable orders rose 5% in March. In average, economists expected durable orders to drop 0.2% - 0.8%. The U.S. Department of Trade said New Home Sales reduced 11.8% to 1,093 million units annual rate in April in the U.S. compared to March. The revised March data showed that New Home Sales were on the annual level of 1,239 million units. That was the record level in the whole history. But economists had expected New Home Sales to reduce to 1,2 million units. In France, the third European economy in size, business confidence index dropped for the first time in 11 months from the maximal three-year period level. On Thursday, Insee National Statistical Institute of France reported that index fell from the revised 105 in April to 104. Economists had looked for index to be somewhere around 104. Business confidence in Germany and Italy had also dropped and, combined with France’s data, gave reasons to assume that the tempo of economic growth might reduce in the region in the second quarter after the powerful growth in the first one. In the first quarter, France’s economic growth made up 0.8%, whereas in Eurozone it made up 0.6% in a whole. Insee report notes that index component, estimating the volume of export orders, dropped from –2 to –16 basically due to industrial equipment orders’ reduction that dropped from 5 to –31. Index component, estimating production perspective, rose from –9 to –5, pointing at the growth of overall economic perspective optimism. Aggregate orders index dropped from –13 to –15, which says that domestic market orders could in some way compensate the reduction of overseas orders. Index of price expectations of production companies’ managers rose from –5 in April to 0. The highest index indicator – 122 – was recorded in June 2000, and the lowest – 75 – in June 1993.

The forecast was created by trans1.