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Fed Predicted to Cut Rates by 25bp - but Will it Be Enough?
Wednesday, 31 October 2007 15:23:23 GMT  |  Antonio Sousa and David Rodriguez
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Fed widely expected to cut rates by 25 basis points, but will it be enough to boost stock markets?
Risk premiums in corporate lending remain very elevated – signaling potential for further difficulty
Shares in consumer spending, housing, and construction remain indecisive on mixed data

Click here to join DailyFX Analysts in discussing the Watch What the Fed Watches latest report.

Credit Market

Last Week

Current

Change

% Change

Outlook *

DJ Credit Default Swaps

60.42

61.52

1.10191

1.82%

Deteriorating

10 Year Junk-Bond Spread

425.00

408.43

-16.56

-3.90%

Improving

Credit Card Delinquencies

3.41

3.49

0.08

0.08%

Deteriorating

Mortgage Delinquencies

4.84

5.12

0.28

0.28%

Deteriorating

Consumer Credit

9.6

12.2

2.6

2.60%

Improving

 

 

 

 

 

 

Stock Market

Last Week

Current

Change

% Change

Outlook

Dow Jones Industrial Average

13675.25

13836.85

161.6

1.18%

Improving

Dow Jones Real State Index

292.56

297.13

4.57

1.56%

Improving

Dow Jones Financial Index

666.96

687.16

20.2

3.03%

Improving

Dow Jones Retail Index

120.26

122.31

2.05

1.70%

Improving

S&P Volatility

20.8

20.54

-0.26

-0.26%

Deteriorating

 

 

 

 

 

 

Economic Indicators

Previous

Current

Change

% Change

Outlook

Mortgage Applications

-2.8

3.8

6.6

6.60%

Improving

New Home Sales

735

770

35

4.76%

Improving

Personal Spending

0.4

0.6

0.2

0.20%

Improving

Personal Income

0.5

0.3

-0.2

-0.20%

Deteriorating

PCE

2.1

1.8

-0.3

-0.30%

Deteriorating

Initial Jobless Claims

313

331

18

5.75%

Deteriorating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Improving outlook means the Federal Reserve could use this indicator to support a rate hike. The opposite stands for deteriorating outlook.

 

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