The Banking and Strategy Initiative

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US Economy: And finally the Dow takes a chance (Of May data and market correction)

With jobless claims coming down from a new 400,000 watermark in April and Existing home sales up 10% on last year  being good data enough to not upset any further calculations of GDP growth and US vitality in the next few months the 1320 S&P levels proved the turning point for the US markets. Meanwhile lest you think otherwise, the Euro remains a muddle even as questions of Grexit and the tumult it would cause died over the weekend with a certainity of recession the only economic result of the deliberations and the Hollande and the Tsipras tours underway right now, looking to rebuild the fabric of the restruucturing plans differently with more Growth without spending ( Hollande) and more aid without austerity (Tsipras) Meanwhile a new LTRO though mooted ( and it sank my heart at the prospect of more bank loans in the system) did not seem likely to take off as amild 0.5% cut on the Euro

Drachma Vologases VI

Drachma Vologases VI (Photo credit: dynamosquito)

GDP should not be a concern with inflation good for more than a 2% tick and different constructs to let Greece float and print Drachmas without leaving the Euros (Geuros) also taking a brave stab at reaching the ears of some policymakers even as UK and other countries probably stop planning any political upheavals for referendum to join the unassailable currency that refuses to die. The Euro started floating down though in the maeantime as dust settled down on thee Weekend catch up today morning and the resulting optimism tried to stay in Equities in Europe.

SAN RAFAEL, CA - NOVEMBER 30:  A 'sale pending...

SAN RAFAEL, CA - NOVEMBER 30: A 'sale pending' sign is posted in front of a home for sale on November 30, 2011 in San Rafael, California. Despite a 10.4 percent surge in October pending home sales of existing homes, the price of homes nationwide fell 3.9 percent at the end of September compared to one year earlier. (Image credit: Getty Images via @daylife)

Afternoon trading in the US is now staying largely positive evenn as Financial s led by JP Morgan and the Digital media led by Facebook trudge to more realistic levels with sellers at every corner waiting to take both sectors out to where valuations can be considered reasonable for now. Financials are going to take a long time to readjust as all of June estimates will keep bridging exceptionally optimistic expectation s of Q1 to the dismal Q2 performancce still being assessed. Thus the 4.62M existing home sales numbers would have to do much more than 10% annual growth to matter. though a 10% rise in the price levels is nothing to scorn at. However, bank mortgages have not picked up and that means that residents or future residents are trying to keep up with the rent rather than take another stab at the rent vs buy decision

 

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