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Uncertainty over the US stock market and the ongoing troubles of the dollar could continue this week, depending on a number of economic indicators to be released this week.
On Tuesday, the Federal Reserve Board will meet to decide on interest rates. A drop in interest rates could be a welcome boost to the floundering economy but no change from the current 5.25 percent rate is expected this week.
Figures on productivity will also be released on Tuesday and are expected to be up to 2.1 percent, compared to 1 percent in the previous quarter.
On Wednesday, the wholesale inventories for June will be released. Inventories were up 0.5 percent in May and the June figure is expected to show further increases.
On Friday, figures on US imports for July will be released.
The figures, which are generally expected to be positive, could provide some stability after a particularly volatile week on a number of fronts last week.
Credit market fears continued to haunt Wall Street on Friday as the Dow Jones industrial average plummeted more than 280 points.
The move into the red followed comments by Bear Stearns Cos. Chief financial officer Sam Molinaro that the credit market was in the worst state he has seen since 1985.
News from the US on Friday that job growth there grew by just 92,000 in July didn’t help matters. This was significantly lower than the 135,000 expected, prompted fears about the health of the economy there.
Meanwhile, the embattled US dollar ended last week on a low note as it lost ground against a number of other major currencies.
The euro was back over the 1.38 usd mark late on Friday, coming close to last month’s all time high of 1.3853 at one point. The British pound was up to 2.0410 from 2.0366 and the Swiss franc was up to its highest level in two years.
07:48
Posted on Aug-07-2007
