Friday, April 27, 2012

Let's Watch U.S. GDP Data and the condition of Europe

Accurate data is very important to making good business plan. Therefore, the release of data from an institution so long awaited by businesses, including investors.

The emergence of the U.S. GDP data release on Friday may give directions guide the movement of financial markets, as investors seek guidance signals from the country that still gives a mixed signal. While the GDP data is considered as guidelines that likened see previous events, traders hope that this report can be a road map for the momentum that will emerge in the second quarter.

Jobs data itself is still a major concern after data showed the weakness in March that the non-farm payroll numbers that come up with half of number that appears in February. An increase in weekly unemployment claims provided by the weak increase of 120,000 jobs in March, has raised fears for the strengthening of the non-farm payrolls in April, which will be released next week. Jobless claims are at levels higher than Thursday, which appeared in number 388 000, beyond expectation of 375,000.

Meanwhile, from Europe, S & P cuts debt rating of Spanish
Standard & Poor's 500 cut its debt rating of Spain as much as one level of A to BBB +. S & P argued that Spain should continue to provide fiscal support to the banking sector as the contraction in their economy. In addition, S & P also lowered the short-term debt rating of Spain from A-1 to A-2. As for the outlook of this debt ratings is negative.

Just information, the burden of the cost of debt term of 10 years Spain has jumped about 70 basis points so far this year. This causes the Prime Minister Mariano Rajoy hard to convince investors about the Spanish economy, in the midst of high unemployment and a contraction in the economy.

S & P saw Spain's budget will continue to be eroded amid the economic contraction that occurs. At the same time, they also see that the Spanish government will be poured even more fiscal support to the banking sector. As a consequence, there will be an increased risk in Spain.

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