Markets watch out for the final read on US Q3 GDP to be released today

By FXStreet FXStreet (Mumbai) – The final read on US third-quarter GDP is scheduled to be released today at 8:30 a.m. ET. Economists polled by Reuters expect the growth figures to come in 1.9 per cent lower than the second estimate of 2.1 per cent. It is also quite possible that the GDP growth has remained unchanged from the second estimate. Economists expect the growth figures to remain above the advance estimate of 1.5 per cent. Real GDP had increased 3.9 per cent in the second quarter. The dismal GDP figures will negatively impact markets.

John Lonski, chief economist at Moody’s feels that the “GDP report will show the U.S. is not in danger of slipping into recession anytime soon”. He has however raised issues which he thinks are hindering corporate earnings increase. He blames “weak sales even outside of energy” for poor corporate earnings. He is of the opinion that this lack of sales growth would reduce the number of rate hike planned for 2016. Analysts broadly hold that the pace of tightening in 2016 will probably be slower than what the central bank expects it to be.

Doug Cote, chief market strategist at Voya Investment Management has also flagged similar concerns. He …read more

Source:: FX Street