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American equity markets contract after weak US data

The US Stock market experienced a negative opening as weak US data and lingering doubts over the misunderstood effects of the sequester left a sour taste in investors’ mouths. In the United States, Core Personal Consumption Expenditure – Prices Index (YoY) rose just +1.3% in January, compared +1.4% in the previous month. In addition, the Core Personal Consumption Expenditure – Price Index (MoM) climbed +0.1% in January, missing expectations of +0.2%. Finally, Personal Income (MoM) fell -3.6% in January, coming in at less than the projected value of -2.2%.

Beginning with the indices and composites, the NASDAQ fell -0.74% as it settles in region of 3136.86, down -23.24 points in these moments. In addition, the S&P 500 is trading in negative territory, operating at 1506.31, descending -8.37 points or -0.55% at the time of writing. Finally, the Dow Jones has moved lower at the opening, trading in the zone of 13945.69, presently -0.77% after a movement of -108.90 points.

Sectors are nearly all in the green currently, however the Basic Materials and Energy sectors have distinguished themselves as main losers thus far, falling -1.02% and -1.01% respectively. In other news, the price of crude has settled below USD $90.61/bbl Friday.

Session Recap: Broad gains for the dollar

The US dollar remains buoyed on Friday as soft global data and the 'sequester' have contributed to the market's cautious mood and benefited the USD for its safe-haven role. US political leaders failed to reach an agreement on alternative budget savings triggering automatic spending cuts. The euro fell below the 1.3000 mark and hit a fresh yearly low at 1.2983, while the pound is among the worst performers, having fallen to a 31-month low of 1.4997 weighed by weaker-than-expected US data. Meanwhile, the CAD found some support from Canadian GDP readings and reversed losses against the greenback. The Aussie and the yen are slightly lower.
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