Two Ways: UK Economy Contracts 0.4%
Strengthen your portfolio in good times and bad.
The UK's longest recession in a generation continues. Britain's Office for National Statistics said today the economy shrank 0.4% in the period from July through September, marking the sixth straight quarterly contraction.
The data came as a big surprise, according to the Financial Times, as economists were expecting growth to return in the quarter, with the average estimate calling for a 0.2% increase in GDP.
Construction and industrial output showed accelerated declines. But the biggest contribution to the fall in growth came from hotels and restaurants, as well as distribution and wholesale, a sign that de-stocking took a bigger toll than expected.
For more on the markets, see Professor Vinny Catalano's Big and Small Companies: Divergences You Must Follow.
From the Bull Pen: This sort of data somewhat confirms that any talk of withdrawing QE measures in the near future is premature. It's the reason why there continues to be a bid in hard assets. Bulls can consider fertilizer company Mosaic (MOS). Will the stock decisively punch through $55 resistance? A sell stop can be set below $52.
From the Bear Cave: Here in the US, bears can look to Barnes & Noble (BKS). Taking a technical look at the stock, a rally back to $19.50 overhead resistance could provide one with a downside opportunity. Entry if and when.
A Quick Check Around the World
Asian trading closed with the Nikkei 0.15%, India 0.13%, Hang Seng 1.71%, Shanghai 1.85%, and Taiwan 0.54%.
Across the pond, we see the FTSE 1.13%, CAC 0.90%, DAX 0.91%
As of 8:10 a.m. EST, S&P Futures are trading +1.00 to 1091.50 and Nasdaq futures are +4.500 to 1767.00.
A Look at Commodities
Over in commodities, crude oil is +0.16 to 81.33 while gold is +3.20 to 1061.80 this morning. Silver is +0.17 to 17.715 and copper +0.040 to 3.0380.
The dollar index is +0.1950 to 75.2750.
On the Radar
10:00 Existing Home Sales 5.38m cons.
Happy Friday! Good luck and have a great weekend!
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