According to analysts' interpretation, that's due to the good impression about the G20 meeting.
During the meeting, G20 has agreed to add an extra $1T in funding to trouble nations. It also clear the worry on protectionism as well as promise to increase public spending.
Another important news is FASB elected to make changes to mark to market accounting standards. Banks will no longer be forced to reflect marks that arise from distressed sales in illiquid markets, but can use their estimate of fair value. This is a good news, because it will make the financial statement of the financial sector become smoother in long term, on the other hand, it may rise speculation about the asset value at one point in time.
Economic Data
Job market
- US Mar unemployment rate up to 8.5% from 8.1% in Feb (same as expectation, 8.5%)
- US Mar job pos cut another 663k jobs and cut 651k in Feb (same, 660k)
- US Mar 28 initial claims up to 669k from 657k last week (worse, 650k)
- US Mar hourly earnings up +0.2% same as Feb (same, +0.2%)
- I expect the unemployment rate will continue to rise and job market will get worse and hopefully will see the peak by late 2009 or early 2010 at around 9.5% to 10.5% and start to climb down.
Consumer market
- US Mar consumer confidence index up to 26.0 from 25.3 in Feb (worse, 28.0)
- US Feb factory orders up +1.8% from -3.5% in Jan (better, +1.5%)
- US Mar auto sales up to 3.3M from 2.9M in Feb
- US Mar truck sales up to 3.8M from 3.5M in Feb
House market
- US Jan home price down -18.97% from -18.55% in Dec (worse, -18.6%)
- US Feb pending home sales up +2.1% from -7.7% in Jan (better, 0.0%)
- US Feb construction spending down -0.9% from -3.5% in Jan (better, -1.9%)
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