Business

Indicators of economy
by kristina leskova

Even though Christmas time is coming and people think about Christmas tree and presents, we cannot forget about the financial crisis. People are willing to buy and spend their money but they prefer not very expensive goods. But this is still better than they would not buy anything. For the economy it is very important to spend the money. We can look at financial indicators in New York stock market that could inform us about the condition of economy. The stock market decreased first time in five days and there is a risk that the Federal Reserve will have to increase interest rates. But rising prices and rising interest rates could stop the recovery of economy. So the Fed ne! eds to be very careful. The wholesale prices jumped 1,8 percent and that is more than expected. Core inflation which excludes food and energy costs rose 0,5 percent – this is the biggest increase in a year. But with the increase of inflation it is sure that prices of food and energy will rise, too. A good sign is that industrial production rose 0,8 percent in November. This increase means that factories ran at higher capacity. The Dow Jones fell 49,05 or 0,5 percent to 10,452,00. S&P 500 index fell 6,18 or 0,6 percent to 1,107,93 and Nasdaq composite index fell 11,05 or 0,5 percent to 2,201,05. The Dow Jones and S&P 500 index closed Monday at their highest levels since October 2008. The bond prices fell, pushing yields higher. The dollar rose to its highest level in two months against euro, but prices of gold fell. Crude oil rose 1,18 dollars to settle at 70,69 dollars per barrel. So some sectors improved but it is still too early to look forward.

related! story (sgx16138): http://news.yahoo.com/s/ap/20091215/ap_on_bi_st_ma_re/us_wal...

by kristina leskova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 12:42 PM