February 2019 Client Confidence Report Speaking Factors:
The Convention Board’s Client Confidence Index jumped to 131.four in February and mirrors the inflow of optimism not too long ago witnessed throughout shares and danger belongings
Present circumstances, expectations for the short-term future, and labor market outlook parts of the index all confirmed indicators of enchancment
The Dow Jones Industrial Common and S&P500 Index are each reacting positively to the report that got here in increased than anticipated
The Dow Jones Industrial Common and S&P500 are reversing losses from early buying and selling in response to the Convention Board’s Client Confidence Index report simply launched for February. With the Client Confidence Index anticipated to get well modestly to 124.1 in line with Bloomberg’s median consensus, the precise studying of 131.four for the interval exceeds estimates by far.
US CONSUMER CONFIDENCE INDEX PRICE CHART: MONTHLY TIME FRAME (JANUARY 2015 TO FEBRUARY 2019)
The metric’s rebound reverses the sharp drop witnessed in final month’s Client Confidence Index and signifies a widespread restoration after three consecutive months of declines. Shoppers’ appraisal of present circumstances, optimism in regards to the short-term future, and outlook for the labor market all confirmed indicators of enchancment in line with the report.
Check out IG’s real-time Consumer Sentiment tracker to see the bullish and bearish biases of merchants right here!
Seeing that the sentiment-driven survey offers a snapshot of present enterprise circumstances and expectations along with shopper attitudes and shopping for intentions, shares started to march increased in response.
US S&P500 INDEX PRICE CHART: 1-MINUTE TIME FRAME (FEBRUARY 26, 2019 INTRADAY)
February’s Client Confidence Index echoes the returning optimism that not too long ago flooded markets and appears to have drowned earlier issues over slowing international development along with a number of different dangers that dominated investor minds solely weeks in the past.
However, it seems that the worst could also be within the rearview mirror – at the very least for now – seeing that the US authorities narrowly averted one other extended shutdown and President Trump introduced he’ll prolong the March 1 deadline that was set to escalate the commerce struggle by elevating tariffs on Chinese language items from 10 p.c to 25 p.c.
As these dangers start to fade, shopper confidence might proceed to rebound and replicate the restoration of fairness costs. Additional value motion in response to the Client Confidence Index is prone to be muted, nonetheless, as Federal Reserve Chairman Jerome Powell is delivering the semi-annual testimony to the Senate Banking Panel which appears to be like to steal the highlight.
Written by Wealthy Dvorak, Junior Analyst for DailyFX
Observe on Twitter @RichDvorakFX
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