S&P 500 selloff intensifies as U.S. retail sales decline
The S&P 500 traded lower on Tuesday, as markets reacted to data that showed that retail sales had fallen last month.
Figures from the Commerce Department showed that sales dropped by 1.1% in July, which is worse than the 0.3% decline markets had expected.
In addition to this, data for June was revised, and showed sales increasing by 0.7% instead of the 0.6% previously reported.
The slowdown of U.S. sales comes a day after figures from China painted a similar picture, and further heightens concerns that global growth could be losing steam.
As of writing, both the S&P 500 and Dow Jones were trading lower.
British unemployment rate falls
Across the pond, data from the United Kingdom painted a more positive picture for the economy, as it was shown that the jobless rate was lower than expected.
Data from the Office for National Statistics showed that the unemployment rate in the UK fell to 4.7% in June, as employment rose more than anticipated.
It was forecasted that 75,000 payrolls would have been added, however this increased by 95,000 instead.
Today’s figures now show that the number of people on payroll has regained roughly four fifths of the jobs lost at the start of the pandemic.
London’s FTSE 100 closed 0.38% higher in today’s session.
EURUSD nears 5-month low
Currency markets were also impacted by the data released today, with major pairs like EURUSD retreating to recent lows.
The world’s most traded currency pair was nearing its lowest level since March, as figures from both the U.S. and Eurozone increased market volatility.
In Europe, data showed that GDP growth in the economic area had risen less than expected for the quarter, coming in at 13.6% vs expectations of a 13.7% increase.
EURUSD fell to an intraday low of 1.1708 on the news, breaking through its long-term support level of 1.1767 in the process.
Markets now wait for Wednesday’s FOMC minutes report, in addition to Eurozone inflation figures for further volatility.
Quote of the day – “In trading/investing, it’s not about how much you make but rather how much you don’t lose.”– Bernard Baruch