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Two Ways: London's GDP is Falling Down


Strengthen your portfolio in good times and bad.

UK's Economy Plunged More than Expected

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

Click here for the full list.

Good luck!
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