U.S Philadelphia Fed Manufacturing Drops to -16.6, Euro-area Consumer Confidence Declines to -19.6 - 21.6.2012

Philadelphia Fed Manufacturing index in June declined to -16.6, well below the May figure at -5.8, as the Federal Reserve Bank of Philadelphia reported. This reading is the lowest in the last 10 months and indicates weaker business conditions in June amid downward pressure on economic activity from worsening European sovereign debt crisis. Existing Home Sales decreased from 4.62M in April to 4.55M in May falling by 1.5 per cent rate, this decline was greater than the 1.1 per cent projected drop. The common currency started declining against the greenback before the news, falling below support level 1.2642. The Euro was under pressure as Euro-area Consumer Confidence declined to -19.6, lower than the previous figure of -19.3, showing that economic conditions are worsening in the 17-nation region.