The US GDP declining depresses the stock – BBC

MARKET

Milan , May 29, 2015 – 19:12

     
     
 

The Milan Stock Exchange closed down a conducted almost always sitting around the same, then to worsen in the final in the wake of the disappointing US macroeconomic data, among which are the contraction of the US GDP in the first quarter and the Chicago PMI index, fell surprisingly in May. On European markets, also it continues to weigh the uncertainty surrounding the negotiations on the debt greek. The final budget has seen the FTSE MIB, weighed down by financial, store the session with a decline of 1.05% to 23,495 points, while the All Share lost 0.98%.

Estimates declining

US stocks down after the negative data on GDP for the first quarter and on the company’s results for the same period. The US government has lowered the estimates of gross domestic product to 0.7% from + 0.2% forecast last month.

Economists had expected a revision to -0.8%. With a GDP of the second quarter expected around + 2%, the US economy is headed towards the worst first half since 2011. The ratio to GDP has also highlighted that corporate earnings for the quarter were down 8.7% over-year, with corporations weighted by the rise of the dollar and domestic companies penalized by crude oil prices. The uncertainty of an agreement between Greece and its international creditors weigh on market sentiment. Meanwhile, the GDP of Greece in the first quarter is confirmed down 0.2%. The country back into recession then, after emerging last year by six consecutive years of negative growth.

May 29, 2015 | 19:12

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