Article by Investazor.com
Taking in consideration the most recent published economic indicators, that aim the American market, we can consider the following deductions:
- The core retail sales, which excludes the automobiles, came in line with the expectations increasing 0.4%. It clearly indicates the fact that the consumers were stimulated to buy in September, sustaining a good rhythm of the economy, before the government shutdown “muddied the waters”.
- Retail sales, which includes the automobiles, missed expectations, decreasing 0.1% as the auto market is passing through the toughest period since October 2012 (sales dropping 2.2% at automobile dealers).
- The producer price index unexpectedly fell o.1% as the previous month increased 0.3%. The price of food decreased, as in general the price of raw materials decreased on account of a decreasing demand fact that led to lower prices on the market. An inflation which remains under the 2% target of the Federal Reserve is clearly giving room to maintain the monetary stimulus.
- The consumer confidence index dropped to 71.2 points, strongly disappointing investors, as it concerns the evolution of the consumer’s spending.
- Tomorrow the spotlight will be the Fed meeting whose decisions will for sure impact the market. Already indexes start climbing awaiting the decision to maintain the QE3 program unchanged for several months from now on. At the moment, economists consider the keeping of the stimulus program a benefic measure for the American economy, so positive reactions may be see in the market if such a decision will me considered.
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