June 15, 2012 / 2:17 PM / 6 years ago

Instant View: June consumer sentiment sinks to six-month low

NEW YORK (Reuters) - U.S. consumer sentiment fell in early June to a six-month low on worries about deterioration in the jobs market and Europe’s festering debt crisis, a survey released on Friday showed.

ANDREW GRANTHAM, ECONOMSIT, CIBC WORLD MARKETS, TORONTO

“Both the current economic conditions and economic outlook balances suffered falls of around five points on the month, suggesting that recent weak hiring is seeing consumers reassess their current financial positions. Meanwhile developments overseas and at home appear to be making them more cautious on the future outlook as well.

“While the U.S. data today would on their own be negative for stocks, speculation that central banks will act to prevent a worst case outcome after the weekend’s elections appears to be supporting sentiment at the moment.”

JOE MANIMBO, MARKET ANALYST, TRAVELEX GLOBAL BUSINESS PAYMENTS, WASHINGTON

“It’s more convincing evidence that the economy is stuck in low gear. We’ve had a steady stream of negative data that increases pressure on the Fed to do more. It’s certainly supportive of the yen rally we’ve seen.”

LAWRENCE GLAZER, MANAGING PARTNER AT MAYFLOWER ADVISORS IN BOSTON

“What’s shocking is how disappointing the data is still. It reflects the general malaise on Main Street right now. Consumers and investors have been hit with a wave of uncertainty and that’s reflected in this.”

MARKET REACTION:

STOCKS: U.S. stocks held earlier gains.

BONDS: U.S. Treasury debt prices also maintained earlier gains.

FOREX: The dollar held onto earlier losses versus the yen while the euro pared losses versus the dollar.

Americas Economics and Markets Desk; +1-646 223-6300

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