Goldman bumps up US GDP forecast on strong housing and jobs market numbers

*Goldman raises GDP forecast
*Strong home sales data

Goldman Sachs has raised its second quarter US GDP forecast from 2.0 per cent to 2.1 per cent on strong home sales. Transactions rose from 0.444m to 0.454m in April, despite an anticipation of slowdown to 0.425m.

US initial jobless claims fell to 340,000 from 360,000 last week. Analysts had expected a drop to 345,000.

These figures gained greater significance yesterday after Fed chairman Ben Bernanke suggested that QE tapering could occur if US data improved.