Markets are correcting moderately lower today, as U.S. traders digest the Preliminary Q3 GDP figure which was revised down from 3.5% to 2.8% as expected. The data was unsurprising, yet the markets have found it not to their taste and are ill at ease. With growth at less than 3% at the height of government stimulus, the implications for 2010 and 2011 are sobering. Put in a nutshell, how are employment and consumption going to recover in the next years without stimulus? Will they recover at all, or are we in for a long period of economic stagnation? These concerns are weighing on traders minds today. In other news, CB Consumer Confidence came out higher than expected at 49.5 vs. a forecast of 47.6, but the news only had a momentary impact. In Europe, German IFO Business Climate data gave a morning boost to equities, coming out higher out at 93.9 vs. 92.6 consensus. The U.S. Treasury held a $42 billion auction of five-year notes which showed strong demand.
U.S. GDP Monthly
Crude oil has taken a 2% dive, breaking below $76 for the second time this month after failing to move above $80 yesterday. We note however that support at $75.50 from November 13 has held so far. U.S. equity markets are trading moderately in the red at the time of writing. FX majors have had a relatively quiet day; a notable loser is the Kiwi which is down strongly against the Dollar and the Yen.