Consumer Sentiment Hits Stock Market
This morning, a report on US consumer confidence was released. The result? Consumer sentiment is at a 26 year low. After yesterday’s promising rebound on the stock market, the news hit the stock market and it is now faltering.
With Americans increasingly worried about the personal financial situation many are finding themselves in, and with oil prices continuing to climb, many are concerned about family budgets. New worries include how to deal with food prices inflation, in addition to concerns over gas prices. Focus is not longer on consumer spending, and the stock market knows it. Instead of buying products, more of the available household budget is going to go into food and gas.
US dollar rally in currency trading
The story with the US dollar is a little different, however. There is a US dollar rally in currency trading right now, as some analysts see an end to the credit market crisis approaching. Additionally, the Fed is expected to stop cutting interest rates after another cut on the 30th of this month. (This could also be affecting the stock market.)
However, some are wondering if the consumer sentiment numbers will affect the US dollar rally as it does the stock market. However, the euro is struggling with reports out of Germany showing decreased confidence, and the sterling is dealing with British economic problems. So maybe it will even out, keeping the US dollar in its first real show of strength in a year.
Consider economic information, such as consumer sentiment, when making investing decisions. It could help you see which way the wind is blowing.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.
Tags: investing blog, stock market, currency trading, US dollar rally,
oil prices, consumer sentiment, food prices inflation
