This week was unlike others mainly as the elections heated race took an end with Obama returning back to his presidential duty, which mounted hopes within the American public regarding a better future for the worlds leading economy as governmental aids and Obamas supportive administration will continue on pulling down gradually the country from a recession while that data released this week was cheerful as well.
In fact Obama won a second term as a U.S president, projecting accordingly under Obama reign to watch overall governmental aids and monetary continue on supporting the worlds leading economy throughout its current slowed down recovery.
The victory where the Democratic President won re-election for the second term, with 303 out of 270 electoral votes required to claim the White House, while his Republican Challenger has so far carried 203 electoral votes, only increased the probability that the past expansionary monetary and fiscal policy will only continue and even expand further
Not forgetting that till the last day the election race was truly tight as throughout the morning only the two challengers were still tying; reflecting accordingly the closest presidential elections in history with the first polling results of the day in New Hampshire’s Dixville Notch representing actually no change except of a tie.
This could explain why this weeks US University of Michigan Confidence Preliminary reading rose cheerfully in November mainly as a result of the re-election of Obama where the index climbed up to 84.9; higher than the prior reading of 82.6 and above the projected reading of 83.0.
Furthermore this week we saw that the countrys trade gap narrowed actually to its lowest level in almost two years and beyond the market forecasts as exports climbed up to a record due mainly to a growing demand from emerging markets on U.S products and services.
If truth be told, the U.S trade deficit narrowed more than forecasted in September to having in fact the deficit low down to 41.5 billion; much lower than the market predictions of a 45.0 billion deficit and better than a prior revised deficit of 43.8 billion from a deficit of 44.2 billion.
In fact the deficit gap came in lower than projected yet it narrowed compared to the ongoing growing demand coming from emerging markets in South and Central America to accordingly overcome the past crucial slowdown in Europe and China that is constantly hurting the trading scene with the U.S and the whole world.
As a result exports rose significantly by 3.1 percent in September to 187 billion while that imports increased 1.5 percent to 228.5 billion from 225.2 billion in the prior month, explaining the current narrowed gap of the countrys trade deficit.
Now turning to the superpowers neighbor and major trading partner; Canada, it watched its trade deficit narrow as well to 0.83 billion from a prior revised deficit of 1.52 billion from 1.32 billion; much lower the market predicted deficit reading of 1.50 billion.
Having in mind that that the Canadian economy major strength is trading and therefore these current toughened and hardened global conditions creates constantly downside pressures on the countrys trading although the deficit barrowed and growth remains spotted clearly and its revival pace is at a faster pace than the United States one.