Interest In U.S. Assets Comes in Less Than Expected

“International purchases of U.S. stocks, bonds and other financial assets rose less than forecast in January as confidence grew that Europe was emerging from its debt crisis.

Net buying of long-term financial assets totaled $25.7 billion during the month, down from net purchases of $64.2 billion in December, the Treasury Department said today in Washington. Economists surveyed by Bloomberg projected net buying of $40 billion of long-term assets, according to the median estimate.

“The need for a safe haven is slightly reduced as the euro debt crisis is no longer dragging down the world markets, but the U.S. is winning the economic growth race among developed nations and this is attracting capital,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, said before the report was released….”

Full article