US Economy: Impact of a Strike On Syria | Insights into the Week Ahead

With America’s attack over Syria imminent, there is lot of fear over its impact on the market. Most analysts are of the view that the markets upbeat movements will now slide down as an attack is expected to shake the economy to some extent. The ripples will be evident once the congress votes on the proposed military strike. The passing of the resolution through the Senate Foreign Relations Committee mid last week already had its impact on the stock market.

Impact of a Strike

As per the International Monetary Fund, the direct fall out of a US military strike on Syria would be a $10 jump in the price of a barrel of oil.  This would in turn slow down global economic growth by 0.25%. So, investor fears are justified.

What Markets are Looking Forward To?

The market is looking forward to Friday, when the day when the August producer price index and retail sales will be released. It is expected that retail sales will rise modestly to 0.4% compared to last month while producer prices are expected to come down to 1.3% after shooting up to 2.1% last month. There is lot of optimism over the retail sales figure as it goes to show that consumer spending habits is now gaining confidence. . Also on Friday, the University of Michigan/Reuters will release its report on consumer confidence index for September. Last month, the index fell to 82.1 after going up to 85.1 the month before.

Last week, on an average, the Dow Jones industrial average index futures, Nasdaq index futures and Standard & Poor’s 500 index went up marginally. The trend is likely to continue this week. For the most of this week, figures on China’s growth in lending rates, consumer rates and producer rates will start pouring in. The results are expected to have a bearing on the US stock markets.

About the Author

Sandra
I am working as Editor in Chief for Financeninvestments.com. Writing on Financial Topics is my passion. You can find me on , Seeking Alpha Instablogs or join our Facebook Community, s. FNI is a great Community for financial bloggers and writers. Get everything you wanted to know about your finance and investment related matters such as mutual funds, banking, retirement, economics and much more.

Be the first to comment on "US Economy: Impact of a Strike On Syria | Insights into the Week Ahead"

Leave a comment

Your email address will not be published.


*