Wall Street advanced on Wednesday, sending the Dow Jones to an all-time high. The Federal Reserve said in its Beige Book business survey released on Wednesday, that economic growth was modest to moderate in the latest period as all 12 of its districts reported stronger consumer spending and expanded manufacturing. U.S. stock indices ended in the positive territory on back of on better than expected Chinese economic data. European markets ended in the positive territory on back of on easing Portugal bank fears and better than expected after China GDP growth figures which stood at 7.5%.
Asian markets are trading on a positive note today on the back of favorable economic data from US in yesterday’s trading session along with rise in material and industrial shares. The greenback gained around 0.2 percent yesterday and is trading at 80.57 this morning on the back of favorable economic data from the country. However, rise in risk appetite in market sentiments which led to decline in demand for low yielding currency and statement from US Federal Reserve Chair Janet Yellen indicating rise in interest rates sooner than expectations capped sharp upside in the DX. The currency touched an intra-day high of 80.66 and closed at 80.63.
US Producer Price Index (PPI) was at 0.4 percent in June as against a decline of 0.2 percent in May. Core PPI rose to 0.2 percent in last month from decline of 0.1 percent in May. TIC Long-Term Purchases was at $19.4 billion in May with respect to earlier decline of 41.2 billion a month ago. Capacity Utilization Rate unchanged at 79.1 percent in June. Industrial Production grew at slow pace of 0.2 percent in June when compared to 0.5 percent in May. National Association of Home Builders (NAHB) Housing Market Index grew by 4 points to 53-mark in July from 49-level in June.
In London, U.K. unemployment slid to the lowest in 5 1/2 years and the number of people in work rose to a record as the economic recovery strengthened. The jobless rate fell to 6.5 percent in the three months through May, the lowest since the fourth quarter of 2008, from 6.6 percent in period ending April. The pound saw very little reaction to the data and is trading at 1.7141 holding near its top trading range.
The euro recovered slightly on Thursday morning to trade at 1.3528 after easing against a stronger US dollar as traders continue to focus on banking problems in Portugal. However, upbeat market sentiments coupled with favorable economic data from the region cushioned sharp fall in the currency. The Euro touched an intra-day low of 1.3519 and closed at 1.3525 on Wednesday. Italian Trade Balance was at a surplus of 3.68 billion euros in May as against an earlier surplus of 3.52 billion euros a month ago. Eurozone Trade Balance at surplus of 15.3 billion euros in May from previous surplus of 15.2 billion euros in prior month.