Equity indices pushed to fresh highs today as positive sentiment from the Asian session spilled over into the European session. The DAX index pushed to fresh record highs, trading towards 11,280 as it remained on track to add a third straight session of gains. The German benchmark index has rallied almost 15% since the start of the year as concerns regarding the Greek debt crisis quickly dissipated after eurozone ministers agreed to fresh terms earlier this week.
However, macroeconomic data has failed to back up the recent rallies in global equity markets, instead investors are pushing up stocks on the hopes that central banks around the world will continue to provide markets with cheap liquidity amid easy monetary policy.
Over in the US, equity markets were trading tentatively lower on a combination of mixed economic data and comments from St Louis Fed President James Bullard. Inflation data released earlier this afternoon showed prices had fallen by slightly more than expected, with CPI for January dropping -0.7% m/m against expectations of a -0.6% m/m decline. Investors were also negatively surprised by initial jobless claims, which increased 313K last week against expectations of a 290K increase. Despite durable goods orders improving 2.8% in January from -3.4% the previous month, both the S&P 500 and DJIA trading in negative territory at the time of writing.