FXStreet (Mumbai) - The final read on US third-quarter GDP is scheduled to be released today at 8:30 a.m. ET. Economists polled by Reuters expect the growth figures to come in 1.9 per cent lower than the second estimate of 2.1 per cent. It is also quite possible that the GDP growth has remained unchanged from the second estimate. Economists expect the growth figures to remain above the advance estimate of 1.5 per cent. Real GDP had increased 3.9 per cent in the second quarter. The dismal GDP figures will negatively impact markets.

John Lonski, chief economist at Moody's feels that the "GDP report will show the U.S. is not in danger of slipping into recession anytime soon”. He has however raised issues which he thinks are hindering corporate earnings increase. He blames “weak sales even outside of energy” for poor corporate earnings. He is of the opinion that this lack of sales growth would reduce the number of rate hike planned for 2016. Analysts broadly hold that the pace of tightening in 2016 will probably be slower than what the central bank expects it to be.

Doug Cote, chief market strategist at Voya Investment Management has also flagged similar concerns. He feels lower oil price would implies lower emerging market growth and slower growth would in turn hurt corporate profits “in ways that are still not factored in”.
Cote is however optimistic about improvement in global growth outlook. Global growth, he thinks will continue to receive support from the low interest rates low Treasury yields which will further strengthen the housing market.

Other indicators due today:

November existing home sales data and the FHFA home price index for October are also scheduled to be released today. The Richmond Fed Survey for December is also due today. These data will further help markets to gauge the health of the economy.