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15 Feb 2013
Forex Flash: US market recap, more than meets the eye – Deutsche Bank
Amidst the background of the G20, the US session was far more interesting than the closes suggested. Despite the S&P500 (+0.07%), Dow Jones (+0.07%) NASDAQ (+0.06%) and CDX IG (+0bp) indices all closing virtually unchanged on the day, there was a lot to digest. The opening bell saw the S&P 500 trade 0.4% lower after euro area GDP disappointed (-0.6% QoQ vs -0.4% expected) with Germany, Italy and France all coming in lower than expected.
According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Our economists note that together with the earlier -0.7% QoQ figure for Spain, these make Q4 the worst quarterly GDP print since H1 2009 for the EMU4 countries.” US equities spent the rest of the day recovering from the lows as sentiment took on news that Berkshire Hathaway was joining with an investment firm in acquiring Heinz in a transaction valued at $23B in a massive blockbuster. Additionally, markets digested the falling prices of gold and precious metals.
According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Our economists note that together with the earlier -0.7% QoQ figure for Spain, these make Q4 the worst quarterly GDP print since H1 2009 for the EMU4 countries.” US equities spent the rest of the day recovering from the lows as sentiment took on news that Berkshire Hathaway was joining with an investment firm in acquiring Heinz in a transaction valued at $23B in a massive blockbuster. Additionally, markets digested the falling prices of gold and precious metals.