Such gains occurred despite downbeat earnings reported by EV maker Tesla. Stocks in the company fell by 12% after top-line revenue of $25.17 billion for the fourth quarter fell short of an expected $25.87 billion. Adjusted net income totaled $2.48 billion, lower than an expected $2.61 billion. The company lowered its full-year outlook as a result.

Economic data came in hot, with the fourth quarter US gross domestic product (GDP) showing that the US economy grew by 3.3% on an annual basis. This significantly outpaced the 2% growth expected by economists.

The post S&P 500 Reaches New Height as Tesla Slips appeared first on theprimarymarket.com.

Consumer spending from July to September rose at an annual rate of 3.6%, with private investment surging by 10.5% annually while housing investment saw a 6.2% rise on a yearly basis, thereby defying a steep rise in mortgage rates. The economy was also bolstered by companies boosting their inventories in anticipation of rising sales.

Despite this positive economic growth, the Organization for Economic Cooperation and Development forecasted that the U.S. economy will grow by just 1.5% in 2024, down from the 2.4% expansion in 2023. This is particularly unexpected given that 2023 saw the Federal Reserve extend its steep interest rate rises, marking 11 increases since March 2022.

The post U.S. GDP Growth Hits 5.2% in Third Quarter appeared first on theprimarymarket.com.

The tech-heavy Nasdaq Composite index declined by around 0.3%, while the benchmark S&P 500 and the Dow Jones Industrial Average edged 0.1% lower. Markets find themselves under pressure as the price of oil continues to surge toward the $100 per barrel mark. After hitting new 2023 highs on Wednesday, oil prices touched $95 per barrel on Thursday morning before retreating to around $92.93 per barrel. Brent crude futures were last at $95.91 after hitting $97 per barrel.

Following the release of such economic data, the Federal Reserve continues to stand by its belief that interest rates will likely need to remain higher for longer in order to keep inflation down. Further Fed movements will also be influenced by the release of the latest PCE inflation reading, which is the Fed’s preferred inflation gauge.

The post Stocks Fall After the Release of GDP Data appeared first on theprimarymarket.com.

This figure fell in line with analysts’ previous estimates of a 0.3% rise in May. For the second quarter, the Bank of Canada forecast a 1.5% annualized GDP rise. Should June’s GDP fall by 0.2%, however, this would result in a lower 1% year-on-year rise for the quarter.

Statscan observed that a rise in manufacturing and real estate sectors as well as a recovery in wholesale and public administration helped to drive economic growth in May. Manufacturing posted its highest rise since October 2021.

These increases helped to offset sustained losses in Canada’s energy sector, with raging wildfires in the main oil-producing province of Alberta pushing the sector lower.

The post Canadian Economy Expected to Contract in June Following Previous Rise appeared first on theprimarymarket.com.

China’s Gross Domestic Product (GDP) for April to June is expected to rise 7.3% compared to the previous year, however, last year saw a major slump in manufacturing activities as parts of the country were on COVID-induced government shutdowns.

Data released the past Thursday showed that China’s exports in June fell by 12.4% year-on-year; the worst decline in three years. Over the course of the second quarter, China managed just 0.5% growth on a seasonally adjusted basis compared to the previous three months.

According to economists polled by Reuters, industrial output, retail sales and investment are also expected to have cooled during the second quarter.

The post Latest Economic Data Expected To Show That China’s Recovery Is Flailing appeared first on theprimarymarket.com.

The State Council—China’s cabinet—was largely expected to announce on Friday a new support package to prop up the country’s economy. Speculation was boosted by the central bank’s surprise decision to cut interest rates earlier in the week; a move that economists claimed signaled a loosening monetary policy.

Investors were left disappointed, however, as the address lacked any specific details on a stimulus plan. Instead, the State Council commented that the government is in the process of assessing new measures and that these would be adopted in a “timely manner” once agreed upon.

Responding to this development, Goldman Sachs lowered its forecast for China’s growth this year from 6% to 5.4%, explaining that any potential stimulus package is expected to be smaller than those in previous downturns. The investment banking company claimed that this is because of rising debt levels, a declining population, and President Xi’s calls for less property speculation.

The post Goldman Cuts China GDP Forecast, Citing Lagging Economic Support appeared first on theprimarymarket.com.

Eurozone gross domestic product (GDP) fell by 0.1% compared to the previous quarter, while it rose by 1.0% compared to the same time the previous year. The revision is primarily a result of a second estimate released by Germany’s statistics office showing that the country went into recession in early 2023. The revision also cut the euro zone’s fourth-quarter GDP growth to -0.1%.

In addition to Germany, it was also found that the GDP declined on a quarter-on-quarter basis in Greece, Ireland, Lithuania, Malta, and the Netherlands.

According to Eurostat, quarterly GDP was most heavily impacted by increased household spending, which shredded 0.1 percentage points, public expenditure, which caused a 0.3 percentage point hit, and inventory changes, dragging down GDP by 0.4 percentage points.

The post Euro Zone in Recession Following Downward Revision of Growth appeared first on theprimarymarket.com.

U.S. GDP growth was 1.3% in the first quarter of 2023, meaning that U.S. economic growth is yet to collapse since the coronavirus pandemic. Several major U.S. corporations reported strong Q1 earnings, with specialty clothing retailers Abercrombie & Fitch and Urban Outfitters reporting significant sales rises while Nvidia and Palo Alto Networks reported upbeat earnings forecasts, signaling that business-to-business sales are also proving strong.

Although a group of economists from Citi stated on Thursday that further rate hikes from the Federal Reserve may be needed in order to cool inflation, Fed Chair Jerome Powell revealed that there is a possibility that the central bank may pause its rate hikes, stating that he prefers to keep his options open ahead of the next policy meeting.

Federal Reserve Bank of Boston President Susan Collins expressed hope that rate hikes could be tamed, explaining: “While inflation is still too high, there are some promising signs of moderation. I believe we may be at, or near, the point where monetary policy can pause raising interest rates.”

The post GDP, Jobs Data Subside Recession Fears appeared first on theprimarymarket.com.

Georgieva added that while the global economic outlook for 2024 is set to improve, economic growth is expected to remain below its historic average of 3.8%. Currently, the IMF predicts global growth of 2.9% this year, with updated forecasts set to be released next month.

“So, we continue to monitor developments closely and are assessing potential implications for the global economic outlook and global financial stability,” Georgieva stated at the China Development Forum, adding that particular attention will be paid to the most vulnerable countries.

The IMF chief did state, however, that China’s rapid economic rebound, with a projected GDP growth of 5.2% this year, is a good sign for the world economy.

The post IMF Calls For Caution As Financial Instability Threatens Stunt Global Economic Growth appeared first on theprimarymarket.com.

Hatzius slashed his forecast for ful-year GDP growth from 1.5% to 1.2%. “The macroeconomic impact of a pullback in lending will remain highly uncertain until the extent of the stress on the banking system becomes clear,” Hatzius wrote.

Silicon Valley Bank’s collapse last week Friday is the largest banking failure since the 2008 financial crisis. Furthermore, it is the second largest failure of a bank in U.S. history behind that of Washington Mutual during the Great Recession.

This failure is being followed by widespread uncertain surrounding Credit Suisse, with the bank’s largest shareholder, Saudi National Bank, refusing to provide further financial support. While they resorted to sending the bank’s executives out into the market to reestablish confidence, this tactic had a minimal effect.

The post Goldman Sachs Reduces GDP Forecast Following Banking Crisis appeared first on theprimarymarket.com.

Such gains occurred despite downbeat earnings reported by EV maker Tesla. Stocks in the company fell by 12% after top-line revenue of $25.17 billion for the fourth quarter fell short of an expected $25.87 billion. Adjusted net income totaled $2.48 billion, lower than an expected $2.61 billion. The company lowered its full-year outlook as a result.

Economic data came in hot, with the fourth quarter US gross domestic product (GDP) showing that the US economy grew by 3.3% on an annual basis. This significantly outpaced the 2% growth expected by economists.

The post S&P 500 Reaches New Height as Tesla Slips appeared first on theprimarymarket.com.

Consumer spending from July to September rose at an annual rate of 3.6%, with private investment surging by 10.5% annually while housing investment saw a 6.2% rise on a yearly basis, thereby defying a steep rise in mortgage rates. The economy was also bolstered by companies boosting their inventories in anticipation of rising sales.

Despite this positive economic growth, the Organization for Economic Cooperation and Development forecasted that the U.S. economy will grow by just 1.5% in 2024, down from the 2.4% expansion in 2023. This is particularly unexpected given that 2023 saw the Federal Reserve extend its steep interest rate rises, marking 11 increases since March 2022.

The post U.S. GDP Growth Hits 5.2% in Third Quarter appeared first on theprimarymarket.com.

The tech-heavy Nasdaq Composite index declined by around 0.3%, while the benchmark S&P 500 and the Dow Jones Industrial Average edged 0.1% lower. Markets find themselves under pressure as the price of oil continues to surge toward the $100 per barrel mark. After hitting new 2023 highs on Wednesday, oil prices touched $95 per barrel on Thursday morning before retreating to around $92.93 per barrel. Brent crude futures were last at $95.91 after hitting $97 per barrel.

Following the release of such economic data, the Federal Reserve continues to stand by its belief that interest rates will likely need to remain higher for longer in order to keep inflation down. Further Fed movements will also be influenced by the release of the latest PCE inflation reading, which is the Fed’s preferred inflation gauge.

The post Stocks Fall After the Release of GDP Data appeared first on theprimarymarket.com.

This figure fell in line with analysts’ previous estimates of a 0.3% rise in May. For the second quarter, the Bank of Canada forecast a 1.5% annualized GDP rise. Should June’s GDP fall by 0.2%, however, this would result in a lower 1% year-on-year rise for the quarter.

Statscan observed that a rise in manufacturing and real estate sectors as well as a recovery in wholesale and public administration helped to drive economic growth in May. Manufacturing posted its highest rise since October 2021.

These increases helped to offset sustained losses in Canada’s energy sector, with raging wildfires in the main oil-producing province of Alberta pushing the sector lower.

The post Canadian Economy Expected to Contract in June Following Previous Rise appeared first on theprimarymarket.com.

China’s Gross Domestic Product (GDP) for April to June is expected to rise 7.3% compared to the previous year, however, last year saw a major slump in manufacturing activities as parts of the country were on COVID-induced government shutdowns.

Data released the past Thursday showed that China’s exports in June fell by 12.4% year-on-year; the worst decline in three years. Over the course of the second quarter, China managed just 0.5% growth on a seasonally adjusted basis compared to the previous three months.

According to economists polled by Reuters, industrial output, retail sales and investment are also expected to have cooled during the second quarter.

The post Latest Economic Data Expected To Show That China’s Recovery Is Flailing appeared first on theprimarymarket.com.

The State Council—China’s cabinet—was largely expected to announce on Friday a new support package to prop up the country’s economy. Speculation was boosted by the central bank’s surprise decision to cut interest rates earlier in the week; a move that economists claimed signaled a loosening monetary policy.

Investors were left disappointed, however, as the address lacked any specific details on a stimulus plan. Instead, the State Council commented that the government is in the process of assessing new measures and that these would be adopted in a “timely manner” once agreed upon.

Responding to this development, Goldman Sachs lowered its forecast for China’s growth this year from 6% to 5.4%, explaining that any potential stimulus package is expected to be smaller than those in previous downturns. The investment banking company claimed that this is because of rising debt levels, a declining population, and President Xi’s calls for less property speculation.

The post Goldman Cuts China GDP Forecast, Citing Lagging Economic Support appeared first on theprimarymarket.com.

Eurozone gross domestic product (GDP) fell by 0.1% compared to the previous quarter, while it rose by 1.0% compared to the same time the previous year. The revision is primarily a result of a second estimate released by Germany’s statistics office showing that the country went into recession in early 2023. The revision also cut the euro zone’s fourth-quarter GDP growth to -0.1%.

In addition to Germany, it was also found that the GDP declined on a quarter-on-quarter basis in Greece, Ireland, Lithuania, Malta, and the Netherlands.

According to Eurostat, quarterly GDP was most heavily impacted by increased household spending, which shredded 0.1 percentage points, public expenditure, which caused a 0.3 percentage point hit, and inventory changes, dragging down GDP by 0.4 percentage points.

The post Euro Zone in Recession Following Downward Revision of Growth appeared first on theprimarymarket.com.

U.S. GDP growth was 1.3% in the first quarter of 2023, meaning that U.S. economic growth is yet to collapse since the coronavirus pandemic. Several major U.S. corporations reported strong Q1 earnings, with specialty clothing retailers Abercrombie & Fitch and Urban Outfitters reporting significant sales rises while Nvidia and Palo Alto Networks reported upbeat earnings forecasts, signaling that business-to-business sales are also proving strong.

Although a group of economists from Citi stated on Thursday that further rate hikes from the Federal Reserve may be needed in order to cool inflation, Fed Chair Jerome Powell revealed that there is a possibility that the central bank may pause its rate hikes, stating that he prefers to keep his options open ahead of the next policy meeting.

Federal Reserve Bank of Boston President Susan Collins expressed hope that rate hikes could be tamed, explaining: “While inflation is still too high, there are some promising signs of moderation. I believe we may be at, or near, the point where monetary policy can pause raising interest rates.”

The post GDP, Jobs Data Subside Recession Fears appeared first on theprimarymarket.com.

Georgieva added that while the global economic outlook for 2024 is set to improve, economic growth is expected to remain below its historic average of 3.8%. Currently, the IMF predicts global growth of 2.9% this year, with updated forecasts set to be released next month.

“So, we continue to monitor developments closely and are assessing potential implications for the global economic outlook and global financial stability,” Georgieva stated at the China Development Forum, adding that particular attention will be paid to the most vulnerable countries.

The IMF chief did state, however, that China’s rapid economic rebound, with a projected GDP growth of 5.2% this year, is a good sign for the world economy.

The post IMF Calls For Caution As Financial Instability Threatens Stunt Global Economic Growth appeared first on theprimarymarket.com.

Hatzius slashed his forecast for ful-year GDP growth from 1.5% to 1.2%. “The macroeconomic impact of a pullback in lending will remain highly uncertain until the extent of the stress on the banking system becomes clear,” Hatzius wrote.

Silicon Valley Bank’s collapse last week Friday is the largest banking failure since the 2008 financial crisis. Furthermore, it is the second largest failure of a bank in U.S. history behind that of Washington Mutual during the Great Recession.

This failure is being followed by widespread uncertain surrounding Credit Suisse, with the bank’s largest shareholder, Saudi National Bank, refusing to provide further financial support. While they resorted to sending the bank’s executives out into the market to reestablish confidence, this tactic had a minimal effect.

The post Goldman Sachs Reduces GDP Forecast Following Banking Crisis appeared first on theprimarymarket.com.