Wall Street was disappointed last night by the downward revision of US GDP in the third quarter. Together with the persistent tensions linked to the catchphrase of European sovereign debt and doubts about the US cuts (will Congress maneuver to avoid the automatic cuts that will be triggered after the failure of the agreement in the 'supercommittee' with various quibbles?) the American stock market lost again, and as usual, Asia joined the American anxieties.
And yet, the revision of the US GDP is not such bad news: it is above all linked to the destocking which, if involuntary, is a sign of good demand: in fact, the final domestic demand for consumption and investments grew by 3%, and final sales (GDP minus inventories) by 3.6%. Meanwhile, estimates on corporate profits were released for the first time along with the revisions, and are still rising. In the currency field, the Indian rupee slipped again. Its real effective change, however, is not anomalous. It retraced the increase – the anomalous one for a country with high inflation – of the last two years and is based on the long-term average.
Read also Bloomberg
