The Banking and Strategy Initiative

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US Economy: So Korea adjusts for higher Inflation, lower Growth

CHICAGO, IL - JUNE 25:  A newly-constructed su...

CHICAGO, IL – JUNE 25: A newly-constructed sustainable home is offered for sale in the Humboldt Park neighborhood on June 25, 2012 in Chicago, Illinois. New home sales nationwide in May saw a 19.8 percent from May 2011. The month claimed the highest number of new home sales in 2 years. (Image credit: Getty Images via @daylife)

Korean consumer confidence was above 100 but at a three month low as it fell from 105 in May to 101 in June and the Central Bank reported ahigher 3.7% inflation and gets ready to downgrade growth forecasts in July after Europe refused to budge. Singapore reports its latest Industrial production and the GDP which is more tilted to trade in a few hours China’s growth is expected to fall below 7% in Q2

The morning data for the US was an expected sea of red as the indices ended 1.6% lower back to 1313 for the S&P 500 The New home sales data point was expectedly buoyant at 369k new homes sold but the number is still too small to matter. The Dallas Fed also reported good news bu tthe US has apparently been making too many optimistic noises from such data in the last two years . The Dallas index turned around from -5 to +5 in June and reports on the second largest manufacturing hub of the US as a positive change in Industrial production. Richmond follows today.  The Chicagoi index across 85 indicators reported its first negative diffusion index of -0.20 with 53 indicators reporting negative growth and the CFNAI reporting a -0.45 score from a 0.11 for April. A score below 0 means worsening of conditions nationally

Japan in the meanwhile has asked for $10 B for required Welfare spending raising hopes the currency will not get stronger beyond 80 this time even as Central Bank Auctions in US and France went A-OK, counting the 3-mo and 6-mo bills in the USA at usual yields below 0.1% and 0.15% and the French actually improving cut off yields on their BTF auctions. Spain reported PPI inflation worsening to 3.1%

A raft of June Economic data from around the world including Consumer confidence and retail sales from France and Italy keeps currencies engaged for the week with new Spanish auctions spicing up the trading afternoon in Europe



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