Robust NY Fed manufacturing data spreads optimism across equities and commodities

Wednesday, January 15, 2014

European equity markets rebounded strongly in late trading on Wednesday, tracking strong gains on Wall Street, as robust US economic data spread optimism and increased risk appetite. In the US, the NY Fed manufacturing index jumped by 12.5% in January, beating analysts’ estimates and showed signs of optimism across the manufacturing sector.

DAX, CAC, IBEX and the London benchmark index climbed higher and posted strong gains after rising between 0.78% and 2.03%. In the US, the Dow Jones has been trading more than 100 points higher, while the S&P 500 is up more than 0.4%, at the time of writing.

In London, mining stocks and banks led the index higher, as risk appetite increased. The robust NY Fed manufacturing figures suggested potential for a rebound of base metals demand in the US. Anglo American surged by 5.54%, while Rio Tinto, Mondi and Glencore gained between 0.65% and 2.7%.

In the UK banking sector, Barclays, Standard Chartered and RBS extended gains on Wednesday after rising between 1.46% and 1.63%.

Burberry surged by 4.63% following a report showing strong sales in Q3 2013.

Tomorrow is a busy day on the macroeconomic front with investors watching carefully the releases of inflation data from Eurozone and the US, weekly jobless claims as well as the Philly Fed business index and the NAHB housing market index which could provide further signs about the US economic prospects.

US Empire State Manufacturing Index

US Empire State

 

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