The end of the month has arrived and a slow news week for the UK economy was typified by the reaction, or lack of it, to GfK Consumer Confidence which came out above expectations.
In more startling releases out of the UK, house prices continue to increase and demand has continued to outpace supply.
The Eurozone has also been in a bit of a holding position over the last couple of days as we wait for next week and Mario Draghi’s magic. That last sentence has been written a fair few times over the last year but this time there is a feeling that finally rates are going to be cut and other measures are about to be introduced. I dread to think of the meltdown economic experts may have if he does nothing.
Major news out of the US yesterday was that the economy shrank for the first time in 3 years as it contracted 1% in the first quarter against the initial report of as 0.1% growth. On the plus side, this isn’t thought to be too serious and is blamed on short-term less inventory building and a large increase is expected in Q2. In further good news from the US, there was a larger than expected decline in initial jobless claims.
Next month sees the start of the World Cup in Brazil and yesterday CurrencyUK had its sweepstake. I drew England. I dont expect to be cashing in on that one…
Photo: © Christophe Verdier / photopin
Posted in Daily Market News on May 30 2014