After a run of positive finishes on US markets investors backed away from this years all time highs, after weekly jobless claims came in much better than expected at 292k. While some of this number was put down to a processing glitch on the part of two states not processing enough of their final claims, nonetheless it still looked a pretty strong number and carries on the recent run of improving data. This weaker finish ahead of some key US retail sales data this afternoon and next week’s FOMC meeting suggests an element of caution in the absence of any new drivers to propel markets beyond their previous all-time highs. Even European markets are running into a certain element of uncertainty after a mixed finish yesterday, and this lack of conviction looks set to translate into a flat open this morning. Yesterday’s really poor Italian economic data has once pushed the focus back on the fractured politics of Europe’s third largest economy as parliament there continues to be dominated by internal wrangling surrounding the future of Silvio Berlusconi. Eurozone finance ministers all meet today to discuss the faltering bailout programs of Greece and Cyprus with most market participants universally acknowledging that Greece is going to once again need more money and quite likely some further debt restructuring with Germany still implacably opposed to any form of OSI. The recent recovery in the UK is likely to be once again under scrutiny today and the improvement in the construction sector in particular with the release of the latest construction output data for July which is expected to show a rise of 2.1%, a significant improvement on the June number. We then move across the pond for the latest August retail sales data for the US which has in recent months been extremely lacklustre despite very robust consumer confidence numbers. While new car sales have been going great guns consumers haven’t been spending in the shops with a number of large US retailers lowering their guidance numbers for year end due to weaker spending patterns. The August numbers still look set to show a rise of 0.4%, an improvement on July, though these could well be boosted by “back to school” spending. CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


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