Two Ways: London's GDP is Falling Down
Strengthen your portfolio in good times and bad.
The British economy suffered its worse drop in the first quarter in over half a century. According to Dow Jones, the U.K.'s Office for National Statistics said today that the gross domestic product fell at a downwardly revised 2.40% in the first quarter from the fourth quarter, the largest drop since 1958. On an annual basis, GDP contracted by 4.9%, the largest decline ever.
Economists were expecting a smaller revision for 1Q GDP data. Last week in a survey, consensus forecast called for the economy to contract by 2.2% for the quarter and 4.4% on an annual basis. Originally, GDP was reported to have shrunk by 1.9% for the quarter and 4.1% for the year.
For more context on the global economy, see Professor John Mauldin's No End in Sight for Recession.
From the Bull Pen: Bulls can continue to look to the gold ETF (GLD) as well as the goldminers ETF (GDX). Sell stops can be set below $90 and $38 respectively.
From the Bear Cave: Despite the ugly headlines, the dollar continues to fall against the euro. One can continue to play the dollar bearish fund (UDN). Sell stops can be set below $26.70 (20 DMA).
Quick Check Around the World
Asian trading closed with the Hang Seng -0.81%, India -1.97%, Shanghai -0.54%, Nikkei 1.79%, and Taiwan 0.64%.
Glancing towards Europe, we see the FTSE -0.10%, CAC -0.14%, DAX -0.03%
As of 8:05 AM EST, S&P Futures are trading +1.80 to 923.00 and Nasdaq futures are +1 to 1482.75.
A Look at Commodities
Over in commodities, crude oil is trading +0.17 to 71.66 while gold is +0.10 at 940.80 this morning. Silver is +0.180 to 13.96 and copper +0.50 to 231.75.
The dollar index is -0.2950 to 79.8200.
On the Radar
09:00 Consumer Confidence 55.1
09:00 S&P/Case Shiller Home Price Index -18.75%
09:45 Chicago PMI 38.5
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