US stocks decline on Macy’s sales

The US stock indices fell yesterday night after retailer Macys Inc quarterly results disappointed.  This gave new urgency to investors debate on the timing and pace of reductions in the Federal Reserve’s  (FED) bond purchases. The department store operator Macy’s shares fell 4,4 %% leading to a loss in S&P.  Also Dow Jones  and Nasdaq ended in red territory after Macy’s disappointing sales.

In Europe both France and Germany economies grew faster than the United States in the second quarter of 2013 pulling the euro zone out of its longest recession seen in years. The increased pace was primarily driven by renewed business and consumer spending in two largest economies inside the euro zone. The euro zone economy continues, however, to be fragile with countries as Spain and Italy struggling. The figures published on Wednesday show a 0, 3 %% growth.

Austria and Finland also presented positive growth figures while the Cyprus economy contracted 1,4 %% in the second quarter after the international bailout in March. Laiki, the second biggest bank, was forced to close and the Bank of Cyprus and Hellenic Bank suffered heavy losses on big deposits. In spite of some positive signs inside the Euro zone the economic and fiscal problems seen in the periphery and especially in Southern Europe indicate that the euro zone is in for a bumpy and uneven recovery.

The positive news from France and Germany had little impact on the currencies. Euro/USD traded at 1.3258 after an earlier high on 1.3278.  Traders put stop/loss orders on 1.3230. A break could see a slip to 1.3155. The DXY dollar basket was marginally down after climbing one percent since its low on August 8th.Oil prices fell during yesterday, but precious metals, gold and silver,  demonstrate a clear positive upward trend.

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