The slowly declining status of the economy in Europe is doing some good back in the United States. Europe has been having its shares of debt problems just like the U.S. but now it has to worry about what will need to be done concerning the economy in Greece.
Despite the reports across the board, the U.S. dollar is actually stronger than it was a few months ago however consumers should not get too excited just yet. Home construction was down in the month of April along with factories producing less of their overall products. Combine these issues with the shortage of auto parts coming out of Japan and you will realize that the economy in the states are just as bad as they have been in the past few years.
Investors around the globe, especially Europe, are hoping that Greece can make their payments on time but it looks like they will have to either reduce payouts or delay those bond payments. As of this morning, the dollar gains with the British pound were virtually the same while the Japanese yen rose about $1 and the euro also barely rose.
Do not get too excited because world stocks fell to a one-month low on Tuesday. This weak showing is making skeptics realize that the economy is not recuperating like everyone thought it would.
Hewlett-Packard, which is considered the world’s top technological company in reference to revenue, took its share of the pounding during the month also falling. Shares fell 8.5 points soon following the company’s laying off workers.
The S&P also fell below its average which is also a key issue for the market to consider.
“Earnings from blue-chips as well as data (are) showing evidence of an economic slowdown,” said Chad Morganlander, portfolio manager at Stifel, Nicolaus & Co in Florham Park, New Jersey.