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Real estate prices speed up to 9.3% per year in the U.S.

1 May

S&P/CS Composite betray the continuation of QE?

Bernanke, Chairman of the Fed has reasons for satisfaction: the housing market responds to monetary incentives. Rising prices generates a sense of wellbeing that encourages consumption, bringing the economy closer to potential. In addition, the decrease of unsold houses encourages and supports manufacturers that further contribute to the GDP development. On this channel, the U.S. economy manages to perform well above the European. QE policy has additional support after the S & P/CS20 rose in April by 9.3% annually. Even more interesting is that the index was above this value only in December 2008. In this interpretation, the U.S. capital market indices have preserved earlier gains seeming to prepare for a new historical high. Favorable route was tempered by the activity of the Chicago PMI index which has declined to 49 points unexpected. This obstacle is not insurmountable, watching the confidence recovery reported by the Conference Board index to 68.1 points, well above expectations. But since the end of the month brings portfolio adjustments and today’s Fed meeting scheduled the result is much less clear. If, as seems likely, the Fed will have aA careful and protective tone to the economy, the index US.30 could be on the way to a new record in early May.

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