Choppy trading supports DJIA back into positive territory

Wednesday, August 13, 2014

A return to form for global equity markets as benchmark indices on both sides of the Atlantic rallied higher throughout the day. European stocks posted steady gains throughout the session after the release of as expected German inflation data for July, which saw consumer prices increase 0.3% m/m. The news that France would be supplying arms to Kurdish forces and the announcement by David Cameron that the UK would be playing an active role in the mission to rescue Yazidi refugees in Iraq seemed to assuage market participants as geopolitical risk once again took a back seat.

The improving risk appetite carried over to the US session as both the S&P 500 and DJIA rallied higher despite a slight tempering in July retail sales which were flat m/m in July against expectations of a 0.2% increase. Market appetite seems to be holding firm for now against the tentative backdrop and with the DJIA pushing back into positive territory this year investors will hold out for further insight, offered in tomorrow’s release of initial jobless claims and import prices, before committing significant positions in either direction.  

Retail sales growth comes to a standstill in July 

RSTAMOM Index Adjusted Retail 2014 08 13 16 19 09

Topics: Equities
More from: Kash Kamal