US Durable Goods Plummeted Last July

US durable goods orders plummeted last July, dropping 7.3% on a monthly basis, worse than the market estimate of a 4.0% decline, to a seasonally adjusted US$226.6 billion.

Posting the largest decline was the civilian-aircraft category, which tanked 52.3%, as Boeing Co. reported only 90 plane orders for the month, compared to June’s 287. Orders were also weak outside of the volatile transportation category, falling 0.6% against the market estimate of a 0.5% increase.

stock-market-1

US Treasury prices inched higher following weaker-than-expected durable goods orders, which sparked hopes and put a somewhat outdoor cushion to the market, that the Fed could begin reducing its QE tapering later than anticipated. The 10-year benchmark yield fell 2.7 basis points to 2.79%.

European shares closed Monday lower as political tension in Italy escalated. The FTSEurofirst300 index gave back 0.13 of a point to 1,223.52.

The euro traded lower against the US dollar as investors proceeded with caution amid rising political tensions in Italy. The shared currency pared 0.15 cents to close at US$1.3368.

Leave a Reply

Your email address will not be published. Required fields are marked *