US Economy and Credit Markets Week Ended Oct. 28, 2011
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Treasury prices fell last week as European leaders finally agreed upon a solution to contain the region's debt crisis. Prices were relatively unchanged Monday and climbed on Tuesday as a canceled meeting between European finance ministers raised fears an agreement may not be reached. Treasuries reversed this course on Wednesday as leaders reached a solution to recapitalize banks. Durable goods orders ex-transportation grew faster than expected at a rate of 1.7% vs 0.4%. Prices continued their decline on Thursday as risk appetites remained strong. GDP growth was reported exactly as anticipated at 2.5% while personal consumption expanded 2.4%, higher than the projected 1.9%. Treasuries rose on Friday as concerns that the newly reached European agreement may not completely resolve the region's ongoing problem. Personal income grew 0.1%, less than the expected 0.3% and the final October U of M consumer confidence number rose to 60.9 against the projected 58.0. Major economic reports (and related consensus forecasts) for next week include: Monday: Dallas Fed Manufacturing Index (-5.0); Tuesday: September Construction Spending (0.3%), October ISM Manufacturing Index (52.0) and October Vehicle Sales – Annualized (13.2M Total, 10.3 Domestic); Wednesday: FOMC Rate Decision (0.25%); Thursday: Initial Jobless Claims (400,000) and September Factory Orders (-0.1%); Friday: October Change in Nonfarm Payrolls (94,000), October Change in Private Payrolls (125,000) and October Unemployment Rate (9.1%).
Posted on Tuesday, November 1, 2011 @ 7:52 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.