“Sovereign-International”: Confidence among US consumers on labor and the economy slumped more than expected.
“Sovereign-International” have told clients to expect little in the way of a let up in the velocity and magnitude of poor economic data emanating from the United States after.
The firm’s note of caution was sounded as figures released by the Conference Board showed that US consumers’ confidence in the outlook for the labor market and the economy declined far more than expected in the month of May.
The report, said a “Sovereign-International” analyst, should leave even the most die-hard bulls that the economic recovery is on very thin ice. The news capped off what has been a dreadful month for the US recovery argument and, said the “Sovereign-International” analyst, “Equity markets may not retest their lows imminently but we’ve all been put on notice.”
The analyst was alluding to the sharp fall in global equity markets that followed the consumer confidence data. Markets had already been jittery on renewed fears on the European debt crisis and lukewarm news on China’s economic growth forecast for 2010.
“Sovereign-International” has maintained its view that equities are likely to plummet at some point in early Q3 as the effects of stimulus both in the US and other developed nations continues to wear off and today’s news is only likely to compound that view.
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