Thursday 27 September 2012

Europe reports falling retail sales and confidence as Greeks and Spaniards riot

Economic reports turned negative on Wednesday.

In Europe, Italian retail sales fell 0.2 percent in July while the French consumer confidence index fell to 85 in September from 86 in August.

Weaker economic data in Europe has generally been accompanied by a moderation in inflation though. In Germany, inflation eased to 2.0 percent in September from 2.1 percent in August.

Still, the focus recently has been on anti-austerity riots in Greece and Spain, which has become increasingly violent. Spanish bonds fell on Wednesday, pushing the 10-yield back above 6.0 percent, while the IMF and the EU clashed over Greece's bailout prospects.

In the US, the recovery in new home sales failed to make further progress in August, falling by 0.3 percent. However, the July annual sales rate was revised higher to 374,000, the highest since April 2010.

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