UK GDP dominated headlines yesterday morning. The GDP reading showed that the UK’s economy grew more than expected, posting 0.6% growth for Q4 of 2016. The growth was accredited to the booming tertiary sector alone, with construction and production continuing to disappoint. The figure shows that Brexit fear still has not materialised with consumers. Sterling failed to rally after the news, as markets anticipated a much better reading for Q4.
In other news, the Dow Jones Industrial Average successfully held above the historic and key 20,000 milestone. The US stocks rally was boosted solely by US President Donald Trump and his US economy friendly policies. Caterpillar edged higher while EBay rallied after both companies reported results. The Dollar strengthened throughout the day yesterday and oil climbed above $53 a barrel.
The focus remains on the States, with the world’s largest economy releasing their first of three readings of the Q4 economic growth for 2016. Anticipated to hit 2.1% this will no doubt have markets curious to see if the economy stalled or gained momentum with the new President being elected.
Simultaneously, the US release their monthly Durable Goods Orders which will give markets insight into the demand of hardware goods being purchased. A downturn under the expected number of 2.7% could see the Dollar weaken.
Have a good day.