Stocks Fall Again

It was another negative session for US stock markets overnight as the Dow fell 1% while the S&P 500 fared slightly better with a 0.6% fall. Part of the negativity came from the weaker than expected retail sales data that was released early in the session. The expectation was for retail sales to have grown by 0.3% for the month of February but they in fact fell by 0.1%. After a relatively strong end to last year, retail sales for 2018 in the US have not been particularly healthy.  

The bitcoin price suffered significant falls overnight, dropping just over 10% to US$8,173 per coin. This represents a retracement of the recovery that occurred after the early February lows and represents a 39% fall for bitcoin for the year to date. It is looking increasingly like the rapid gains of 2017 will not be repeated in 2018.

The Atlanta Fed revised down its forecast for Q1 GDP last night with the estimate now sitting at 1.9%. This is a huge decrease from the original prediction of above 5% from late January. Weak economic data has been the cause of the downward revisions with the just released retail sales and CPI data the cause of the latest downward revision. 

Data Releases:

-    US Empire State Manufacturing Index 11:30pm AEDT

-    US Philly Fed Manufacturing Index 11:30pm AEDT

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This article was written by William O'Loughlin - Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via william.oloughlin@rivkin.com.au or by phoning +612 8302 3633.

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This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
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