CB Consumer Confidence Exceeds Expectations, SP500 Moves Away From Session Lows

Key Insights

• CB Consumer Confidence increased from 102.90 to 104.2.
• Case-Shiller Home Price Index declined 0.6% month-over-month in January. 
• SP500 found support near the 3965 level and moved above 3975.

Better-Than-Expected Consumer Confidence Data May Provide Support To Riskier Assets

On March 28, traders focused on CB Consumer Confidence report, which indicated that Consumer Confidence improved from 102.9 in February to 104.2 in March. Analysts expected that CB Consumer Confidence would decline to 101, so the report exceeded analyst estimates.

Earlier, traders had a chance to take a look at the Case-Shiller Home Price Index report for January. The report showed that home prices declined by 0.6% month-over-month in January, compared to analyst consensus of -0.9%. On a year-over-year basis, home prices increased by 2.5%. It should be noted that home prices have been falling for seven months in a row due to high interest rates.

SP500 Tries To Rebound From Session Lows

SP500 moved away from session lows as traders reacted to the better-than-expected CB Consumer Confidence report. Consumer activity is ultra-important for the health of the American economy. If consumers are ready to spend money, companies’ profits would grow, which is bullish for SP500.

U.S. Dollar Index has recently rebounded above the 102.50 level after an unsuccessful attempt to settle below 102.40. Interestingly, rising Treasury yields do not provide any support to the American currency.

Gold pulled back towards the $1960 level after the release of CB Consumer Confidence data. The dynamics of demand for safe-haven assets remain the key driver for gold markets. A better-than-expected report is bearish for gold as demand for safe-haven assets may decrease.

For a look at all of today’s economic events, check out our economic calendar.