Markets Look To Halt Declines In Early Wednesday Trading

The U.S. equity markets limit their decline Wednesday after the release of a higher-than-expected promises of home sales in the United States, a good sign for the housing market.

To 11:30 am (New York time), the Dow Jones is stable at 13,102.6 points and the Nasdaq was down less than 0.1% at 3075.5 points, in volumes still anemic. Investors continue to limit their initiatives to 48 hours of highly anticipated speech of the President of the Federal Reserve in Jackson Hole.

‘Nervousness is probably the key word in today’s session, “said one trader. ‘The speech of Ben Bernanke approaching and investors are increasingly tempted to do nothing,’ he adds.

‘Who can blame them? Opinions are still very divided on the action of the Fed and everyone opts for an approach of ‘wait and see,” concludes the professional.

The trend has been boosted a bit later in the morning by the publication of promises of home sales for July, which rose 2.4% in July according to figures from the National Association of Realtors (NAR ).

By comparison, economists had forecast an increase of about 1% last month. The second estimate of GDP, published earlier in the morning, stood up to 1.7% against 1.5% in the first estimate, in line with expectations.

Still discovering the Fed Beige Book will be published in the second part of the session.

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