With key data due later in the session, a survey of economists conducted by Reuters forecasts US GDP to have grown at a 2.50% annualised pace after expanding at a 1.40% rate during the second quarter. If the sharp drop in Wednesday’s goods trade deficit is considered, an upside surprise is entirely possible, potentially adding to bullish sentiment among Central Bank officials. If the data comes in line with projections, it would dispel ongoing fears that the economy close to stalling. Apart from consumer spending strength and robust exports, the economy should also likely receive a boost from a rebound in inventory investment and mining activity heading into the fourth quarter. US equity futures are trending slightly lower heading into the decision, led lower by the Nasdaq Composite, with any strong reading of GDP likely to put additional pressure on valuations.
Friday Spotlight on US GDP
Daily Analysis - 28/10/2016